Prospex, Raffles Energy report first gas in Romania
LONDON -- Prospex Oil and Gas Plc, the AIM quoted investment company, has announced that it has been advised by the operator, Raffles Energy S.R.L., that first gas production has commenced from Bainet gas field in the Exploration Area of the EIV-1 Suceava Concession, northeastern Romania. Prospex’s wholly-owned subsidiary PXOG Massey Limited holds a 50% non-operated interest in the 980-km2 Concession.
Gas from the field is sold into the national grid run by Transgaz at the Romanian market prices of circa €6 per mcf. The buyer of gas is a well-established Romanian gas trading business. Gas delivered in one month is paid for in the following month. The operator has elected to target an initial flow rate of ~0.7 MMscfd (approximately equivalent to 20,000 scmd). Production rates may be adjusted up or down according to the well performance and the market demand.
Bainet, which was drilled in November 2017 and completed as a producer, has been connected to the Raffles operated Bilca gas processing plant via a 2.2-km flowline tie-back to the existing production infrastructure. The Well was drilled to a TD of 600 m and encountered 9 m of reservoir with 8 m of net gas pay consisting of a good quality Sarmatian sandstone reservoir, similar to that found in fields producing in and around the Concession. Bainet was the first ready-to-drill prospect out of the multiple prospects and leads identified on the Concession.
The remaining prospects continue to represent relatively low cost opportunities to further increase production at Suceava and are currently being evaluated for exploration and potential development.
Bainet came on stream within the original drilling and development estimate, Prospex has paid its share, totaling €400,000.
