Italian Juniors Report Positive Progress
Two Italy-focused junior oil firms – Sound Oil and Mediterranean Oil & Gas – reported positive progress with their operations in the country Monday.
Sound Oil confirmed a successful initial operation, with flow rates and pressure in line with expectations, at its onshore Rapagnano field in northern Italy – where it expects first commercial production to begin by the end of January. The firm said that following site clearance the Rapagnano-1 well was re-entered and operations to isolate the upper-perforated interval and re-open the lower-perforated interval were successfully completed using coiled tubing.
Sound said that, while testing will continue for the next 24 hours, it had already confirmed a stabilized rate of 500,000 standard cubic feet of gas with a flowing well head pressure of 280 psi (pounds per square inch). The firm added that pressures and flow rates are fully consistent with its gas sales agreement with Stecia Energy.
Mediterranean Oil & Gas (MOG) published an operational update in which it reported that its total net production for 2012 was 319,000 barrels of oil equivalent 872 barrels of oil equivalent per day (boepd).
Although MOG had previously achieved around 950 boepd after its offshore Guendaline gas field began production in October 2011, Chief Executive Dr Bill Higgs commented in a company statement that he was "pleased with the production performance of [MOG's] offshore and onshore assets in Italy during 2012" and that the production "provides a solid base from which to progress [the firm's] active exploration and production activities in Italy and elsewhere during 2013".
In addition, MOG subsidiary Medoilgas Civita's Algavizza Production Concession has finally been approved by the Italian government – as noted in the Italian Hydrocarbon Gazette published Jan. 2. The Algavissa concession – the license for which MOG acquired via its purchase of JKX Italia in early 2008 – is located onshore central Italy and is expected to produce approximately 530,000 cubic feet of gas per day.
Meanwhile, MOG also expects a production concession to be awarded to it in the third quarter of 2013 for its Ombrina Mare offshore development after offshore drilling restrictions were lifted in summer 2012. Ombrina Mare is estimated to hold 2P reserves of 40 million barrels of oil and 6.5 billion cubic feet of gas.
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