“Results from these tests provide the company with a commercial advantage over most producing gas fields,” Po Valley chief executive Michael Masterman said.
“This is very pure, clean dry gas and as such, can be delivered to the nearby pipeline grid with very limited surface plant requirements, keeping the next stage of capital development costs to a minimum,” Masterman said.
“This is the strategic advantage of focusing in exploration and development in northern Italy. When you find gas it is almost pure market-ready methane and the market is next door.”
Last month, Po Valley announced a 45% increase in its proven reserves in northern Italy to 36.6 billion cubic feet from 25.3 bcf previously, following a review of the company’s exploration outcomes by Italian-based consulting geologist, Ecopetrol.
The review reported total 2P (proven and probable) reserves steady at 104.6 bcf and 3P reserves (proven, probable and possible) equally steady at 130.4 bcf.
Sillaro (located east of Bologna) and Vitalba (located east of Milan) are the first two of three fields currently being developed by Po Valley. They are planned to supply the company’s first sales into the Italian gas market at the end of this year or in early 2007.
