Prospex says Viura gas production reaches planned plateau rate

(Sharecast News) - Prospex Energy said on Friday gas production at the Viura field in northern Spain had reached its planned plateau rate, confirming strong reservoir performance following the well's return to production earlier this month.

The AIM-tarded energy investor said the Viura-1B well, operated by Heyco Energ�a Iberia, achieved a flow rate of 186,333 normal cubic metres of gas per day on 22 October, equivalent to around 6.9 million standard cubic feet.

Production was achieved at a 30% choke setting, with water output described as low and continuing to decline.

Prospex holds a 7.24% economic interest in the Viura field through its 7.5% stake in Heyco Energ�a Iberia.

The company said it was currently accruing 14.47% of the field's production income until the recovery of its initial capital investment, estimated at around �8m, plus accrued interest at 10% per annum.

"I am very pleased to confirm that the flow rate of natural gas from the Viura-1B well in the Viura field has achieved the planned plateau production rate within a week of the recommencement of production last Friday," said chief Executive Mark Routh.

"The confirmation of the performance of this reservoir is especially pleasing after the recent frustrating one-off event which delayed the resumption of production after the successful workover in July.

"This confirms our view that Viura is a prolific gas field and was an excellent addition to our portfolio and that it is likely to continue production and cash flows long into the future."

The Viura acquisition increased Prospex's estimated reserves by 6.5 billion cubic feet, taking total recoverable reserves to an estimated 90 Bcf at the field.

The operator said it intended to update the reservoir model and reserve estimates once reprocessed 3D seismic data have been reinterpreted.

At 1028 BST, shares in Prospex Energy were up 0.45% at 4.42p.

Reporting by Josh White for Sharecast.com.