Australian oil & gas exploration, development, and production company Po Valley Energy has been awarded a preliminary production concession for the company’s 47 billion cubic feet (bcf) offshore Teodorico gas field in the northern Adriatic Sea.
Po Valley said on Thursday that the offshore production concession was awarded by the Italian Ministry of Economic Development.
The Teodorico gas field, within the AR94PY licence area, is a former Eni gas discovery with 5 wells drilled and tested and full 3D seismic coverage available through Eni’s prior operations. The field is located in the shallow (~ 25m) waters of the Adriatic Sea off Italy’s eastern coastline, and is outside the 12 nautical mile exclusion zone.
Po Valley added it has also been invited by the Ministry of Environment to start the environmental approval process for Teodorico. Preparation of Environmental Impact Assessment (EIA) documentation is advanced and will be submitted in the first half of 2017, the company said.
Following EIA approval and the grant of a full production concession, Po Valley will move to drill two production wells and then connect the gas field to Eni’s Naomi Pandora offshore gas processing platform. The required feasibility study and development design, including well locations, is already complete.
Po Valley Chairman, Michael Masterman, said: “The awarding of this preliminary offshore concession is a very significant step as it allows Po Valley to more rapidly commercialize this very valuable gas field. Following this award, we expect to very substantially increase the proven gas reserve base of the company by being able to convert the existing 2C (contingent) resources of 47bcf into 2P proven reserves.
“Grant of this preliminary production concession and then the full concession is a very significant milestone as it allows the Company to move directly from drilling the two production wells and connecting to the existing Eni processing facility, to gas sales and commercial production. Put simply, new gas project investment is followed shortly thereafter by production and cashflow.”
The company expects to finance the development of the field with a farm-in partner experienced in off-shore drilling.