September 17 (SeeNews) - UK-based Prospex Oil and Gas said on Monday that it has started gas production from the Bainet gas field in the exploration area of the EIV-1 Suceava concession in northeastern Romania.
Gas from the field is sold into the national grid run by Transgaz at the Romanian market prices of some 6 euro per 1,000 cubic feet, Prospex said in a press release.
"The commencement of first gas production in Romania is a milestone event, which transforms Prospex into a revenue generative investment company. With multiple similar prospects already identified on the licence, each of which can be explored and developed at relatively low cost, Suceava represents an excellent, low risk opportunity to scale up our revenues," Prospex non-executive chairman Bill Smith said.
Bainet, which was drilled in November 2017, has been connected to the Bilca gas processing plant via a 2.2 km flow line tie back to the existing production infrastructure. The well was drilled to a total depth of 600 m.
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, the company said.
Prospex Oil and Gas is focused on high impact onshore and shallow offshore European opportunities with short timelines to production. The company's management acquires undervalued projects with multiple, tangible value trigger points that can be realised within 12 months of acquisition and then applying low cost re-evaluation techniques to identify and de-risk prospects.