Australian firm drilling in northern Italy

Nov. 23, 2005
Po Valley Energy Ltd., Sydney, has increased its drilling in northern Italy. The company spudded the Sillaro-1 deviated appraisal-development well about 25 km east of Bologna.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Nov. 23 -- Po Valley Energy Ltd., Sydney, has increased its drilling in northern Italy. The company spudded the Sillaro-1 deviated appraisal-development well about 25 km east of Bologna.

Sillaro-1 is being drilled to a target depth of 2,250 m about 300 m south of the Sillaro-1 wildcat drilled by the company in July. The deviated well is being directed toward the former Budrio-2 gas well, which produced commercial gas for Eni SPA during the 1960s.

Po Valley's review of the Sillaro-1 well results in September concluded that the anticlinal structure dipped deeper and further toward a major fault zone than initially expected. This meant that Sillaro-1 intersected the Pliocene target reservoir lower than prognosis and close to the field's gas-water contact.

The new well is being deviated more toward the old producing Budrio-2 and Budrio-3 wells. Po Valley believes this will produce a commercial flow. The company also is making arrangements to drill down to the prospect's deeper and larger Miocene-age target early next year.

The company also plans to drill in Pandino field and other former ENI production areas as part of its quest to revitalize the area for commercial gas production in light of increasing prices and high demand in northern Italy.