Prospex Energy doubles revenues after Viura-1B flowtest beats expectations
() , an investor in European gas and power projects, announced excellent initial flow rates from its recently acquired Viura-1B development well in northern Spain, which was drilled by HEYCO Energy Iberia. said rates achieved during the well's flowtest exceeded pre-drill expectations.
The recently completed Viura-1B achieved flow rates of up to 500,000 scm/d, which is 72,000 scm/d net to Prospex ( owns 7.23% of Viura through its 7.5% ownership of HEYCO Energy Iberia). said the gas from the flowtest has already been sold on the market. The test determined the optimal long-term production rate for the well at 300,000 scm/d (43,000 scm/d net to Prospex).
As a result of the success at Viura-1B, Prospex's net production doubled in December to c. 82,000 scm/d. The increase does not include production from the existing Viura-1ST3 well, which has been flowing intermittently since mid-October at rates up to 200,000 scm/d (29,000 scm/d net to Prospex).
Mark Routh, the CEO of Prospex, commenting: "The Viura-1B well test flow rates have exceeded pre-drill expectations from the larger than prognosed reservoir section of the main Viura reservoir target. The flow rates confirm the success of this development well with the added bonus that the gas produced from the flow tests has already been sold to the market and that the well is being put on long-term production at a rate of 300,000 scm/d which is 10.6 MMscfd (43,000 scm/d or 1.5 MMscfd net to Prospex). This and the production from the existing Viura-1ST3 well has more than doubled Prospex's net production - directly accruing revenues to the Company's investments as our gas and generated electricity are sold into the burgeoning European energy markets."
View from Vox
Prospex reports excellent initial flow rates from the Viura-1B development well, part of its 7.23%-owned Viura gas field in northern Spain. The test exceeded pre-drill expectations and validated excellent flow rates from the vast resource discovered within the well's primary Utrillas-A target. shares climbed 7% on the news.
Following the test, the well was placed on a stable long-term production rate of 300,000 scm/d. Coupled with recently increased energy prices in Europe, this more than doubled 's net revenues, which should translate into more and faster development across 's European portfolio. At Viura, two more development wells are planned for Q1/Q2 2025 - the Viura-3A and Viura-3B. One already has the full permit to drill approved.
Gas from Viura-1B is already being sold into the grid, and the existing Viura-1ST3 well, which recommenced operations on October 15 2024, is moving toward stable production. The Viura-1ST3 is back online following recent maintenance and upgrades ahead of its planned testing programme. It has been producing intermittently at up to 200,000 scm/d.
Investors have more flowtesting to look forward to next year when and Heyco will appraise the lower Utrillas-B formation. In early October 2024, the companies decided to deepen Viura-1B to the then-undrilled section, which uncovered a new gas-bearing interval. Further analysis and flow tests are expected to quantify recoverable reserves. Based on initial results, we expect a significant upgrade in H2 2025. Currently, the Viura gas field has estimated gross remaining reserves of 90 Bcf (6.5 Bcf net to ).
With the increased revenues, plans to continue expanding its European footprint, with 11 further wells planned over the next 18-24 months across Prospex's three onshore production concessions in Spain and Italy, and prospective blocks identified for acquisition in Poland.
Follow News & Updates from Prospex Energy:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.