Prospex Energy reports new gas discovery at Viura-1B, revenue expected by November 2024

 () , an investor in European gas and power projects, announced that its newly acquired Viura-1B development well in northern Spain, which is being drilled by HEYCO Energy Iberia, has successfully reached its revised targeted total depth of 4,500m (4,100m true vertical depth).

The new total depth was reached on October 21, 2024.  said drilling the well deeper to evaluate the Utrillas-B formation was a "highly successful commercial decision", with "good gas shows and several potential reservoir formations" encountered in the previously undrilled section.

The Viura gas field recommenced production on October 15 2024, with gas currently flowing from the existing Viura-1 ST3 well. Production revenues from the Viura-1B well are expected in November, 2024.

Prospex owns 7.24% of Viura through its ownership of 7.5% of HEYCO Energy Iberia. Prospex will receive 14.47% of production income from the Viura gas field until payback of its initial capital investment from the acquisition in August 2024.

Mark Routh, CEO of Prospex, commenting: "I am extremely pleased to announce further successful results from the Viura-1B development well.  Although there is a great deal of analysis to be carried out to fully assess the implications of the well results to the recoverable reserves from the Viura field, this has transpired to be a highly successful project in which to be involved."

View from Vox

More good news from Prospex's recently acquired Viura gas field in northern Spain as the Viura-1B development well has reached its revised total depth. Deepening the well below the existing proven and producing field into the previously undrilled Utrillas-B formation has uncovered a potential new gas bearing interval, with further analysis and flow tests expected to quantify recoverable reserves. Based on initial results, we expect a significant upgrade.

Drilling of the Viura-1B commenced on June 22, 2024. The well encountered its main Utrillas-A reservoir unit 50m high to prognosis on October 2, 2024, confirming good quality reservoir rock, with significant gas shows throughout the drilling and coring of the main target. The well has already exceeded pre-drill expectations for its main target.

Existing infrastructure connections to the Spanish national grid mean the Viura-1B well will begin to generate revenues immediately, with initial production income expected in November 2024, further justifying the €2.5m capex to appraise deeper. Prospex has an obligation for 15% of development costs.

Prospex also confirmed that Viura's existing Viura-1 ST3 well successfully recommenced operations on October 15 2024, with produced gas being sold into the grid. The well is back online following recent maintenance and upgrades ahead of its planned testing programme. It has been flow tested at rates up to 17 MMcfd (0.48 MMscm/d).

Currently, the Viura gas field has estimated gross remaining reserves of 90 Bcf (2.5 Bcm), of which 6.5 Bcf (0.18 Bcm) is net to Prospex as  owns 7.23% of Viura through its 7.5% ownership of HEYCO Energy Iberia. Two additional development wells are scheduled for 2025 and 2026.

Viura is one of 3 onshore gas fields in Spain. El Romeral, where Prospex has a 49.9% interest, is another, making Prospex now a leading gas producer in Spain. Five new wells on the El Romeral concessions are currently advancing through the permitting process.

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