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LONDON - Prospex Energy PLC (AIM:PXEN), an investing company focusing on European gas and power projects, announced a temporary cessation of production at its Viura-1B well. The halt, due to a leak in the completion tubing, is expected to impact the company’s drilling schedule, with production anticipated to resume by mid-June 2025.
The Viura field, part of Prospex’s portfolio, experienced a shutdown this April after the leak was detected. The operator, HEYCO Energia Iberia S.L. (HEI), is in the process of sourcing the necessary equipment and a drill rig to carry out the workover. Prospex, which owns a 7.24% interest in the field through a 7.5% stake in HEI, is accruing 14.47% of the production income until the payback of its capital investment, estimated at approximately £8 million plus a 10% per annum interest.
Mark Routh, CEO of Prospex, expressed confidence in the operator’s ability to address the issue and stressed the importance of stable gas production before proceeding with the drilling of new development wells. The delay provides Prospex with additional time to generate cash from other producing assets, potentially reducing the need for market-sourced funding.
The Viura-1B well, which began production in December 2024, produced a total of 30.2 MMscm (approximately 1.1 Bcf) of natural gas by the end of Q1-2025, translating to about 4.4 MMscm (154 MMscf) net to Prospex. The operator also plans to perform a workover on the original producing well, Viura-1ST3, to prevent water ingress, which is expected to reduce operational costs.
The schedule for drilling the Phase 2 wells, Viura-3A and Viura-3B, has been pushed to 2026. This adjustment will allow for the optimization of 3D seismic reprocessing and fine-tuning of the well locations. Additionally, the operator intends to test the Utrillas-B reservoir for gas presence in Q1-2026.
Prospex’s strategy involves acquiring undervalued projects with the potential for rapid production increases. The company’s focus remains on scaling up gas production in the short term to support further development and increase output.
This update is based on a press release statement from Prospex Energy PLC.
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