Rick Wilkinson
OGJ Correspondent
MELBOURNE, June 6 -- Po Valley Energy Ltd, Perth, has applied for a production license for its gas fields in northern Italy.
The application includes the main Sillaro field, which was drilled and tested last December and early this year. The work discovered two new gas-bearing reservoirs that flowed at 10 times the expected levels when tested.
Po Valley says it plans to develop the Pliocene sands at Sillaro with two wells. The first is already drilled, while the second will be drilled later this year or early 2007.
The unexpectedly high flow rates encountered in the test program mean that the field will be connected directly to the high-pressure Italian national pipeline grid via a 4-km spur line rather than be directed to the medium-pressure grid that passes just 50 m from the Sillaro wellhead.
The longer connection route will be compensated by the higher production rates—expected to be about 8 MMcfd—and access to the entire Italian market.
Po Valley says the development planning is complete. Production is expected to start during first-half 2007.
The company has applied for eight more exploration licences around its permits near Bologna and Milan.
