By OGJ editors
HOUSTON, Apr. 30 -- A group led by ENI SPA and BG Group has made a natural gas discovery in the Sicily Channel off Southwest Sicily. The exploration well was drilled on the Panda exploration prospect by operator ENI SPA.
The well, which was drilled 20 km offshore in 460 m of water, found a 300 m gross gas interval. On test, the well flowed a total 19 MMcfd of gas from two intervals.
Flow rates were constrained by limits of the testing equipment, ENI said. Initial estimates of reserves are 300-400 bcf of gas.
"This is an encouraging result from the first well drilled in BG's refocused exploration portfolio in Italy, centered on the Sicily Channel and the Po Valley," said Martin Houston, BG executive vice-president.
The discovery, the first to be drilled by the consortium, lies on the ENI-operated G.R14.AG license. In 2000, BG Group purchased a 37.5% interest in the license.
Other consortium partners are ENI 37.5% and Edison SPA 25%. The consortium has rights to acreage totaling 2,400 sq km in this area.
That gas could be earmarked for delivery into the Italian market. BG plans to build a $300 million LNG receiving terminal in Brindisi on the southeastern coast of Italy.
Plans call for the terminal's first 4 billion cu m train to come on line as early as 2006.
Approval of the terminal project is still pending.