GCIProspex Energy reports strong initial results at Viura-1B, approves deeper drilling to unlock further value
() , an investor in European gas and power projects, announced that its Viura-1B development well in northern Spain had successfully reached its reservoir and delivered "better than expected preliminary results", prompting the decision to drill deeper.
said the deeper appraisal has the potential to significantly increase revenues and create further value at a fraction of the cost compared to drilling a standalone well. Viura-1B is being developed by HEYCO Energy Iberia, and is one of 3 wells planned for the Viura gas field where recently acquired 7.23% interest.
Drilling of the Viura-1B commenced on June 22, 2024. The well encountered its main Utrillas-A reservoir unit 50m high to prognosis, confirming good quality reservoir rock. also said it found significant gas shows throughout the drilling and coring of the main target.
Viura-1B will be connected to the existing gas processing facilities on site, thus generating revenues immediately, with production income expected by the end of October or early November.
Mark Routh, CEO of Prospex, commenting: "I am extremely pleased to be announcing the successful results from the Viura-1B development well, which were better than expected and have subsequently prompted the decision to drill deeper into the reservoir providing us with the opportunity to create further value. Prospex's participation in this project was recommended by our technical team and accordingly they deserve credit for this initial success."
View from Vox
Prospex announces positive initial drilling results from its newly acquired Viura gas field in northern Spain. Based on the results, and operator Heyco have approved deepening the well by 200-300m to appraise lower sections of the reservoir, including the undrilled Utrillas-B.
Deepening the well to Utrillas-B can add significant value to the project at a much lower cost compared to a standalone well. Specifically, drilling ahead is estimated to cost the operator €1m or €2.5m in the success case, whereas a new well would cost over €25m. Given the significant estimated upside potential of the formation, it is worth the capex to and its investors.
Moreover, the existing infrastructure connections mean the well will begin to generate revenues immediately, with initial production income expected by end of October to early November, further justifying the capex to appraise deeper. Prospex has an obligation for 15% of development costs.
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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