Prospex soars after gas discovery at Romanian asset

UK-based natural resources investment company Prospex Oil and Gas announced on Monday that Raffles Energy, the operator of the Bainet-1 well in Romania, had made a discovery of new gas in the exploration area.

Bainet-1, of which Prospex held a 50% interest via its subsidiary PXOG Massey, was drilled to a depth of 600m where it encountered a 9m "good quality" sandstone reservoir with 8m of net gas pay.

The two intervals tested within the main gas pay zone were perforated at a measured depth of 513.3-514.8m and 516.3-517.3m.

During the final 11-hour test, natural gas containing over 99% methane flowed at a rate of approximately 33,000 cubic metres per day through an 8mm choke.

The firm noted that Bainet-1, which had been in conservation for some time, was waiting for the receipt of relevant permits and approvals, and expected that experimental production from the Bainet gas discovery would begin during the second quarter of 2018.

Prospex non-executive chairman, Bill Smith, said, "To have made a commercial gas discovery with just the second well in which we have participated is, in our view, testament to the quality of the technical work we carry out when evaluating potential projects and also our focus on minimising risk wherever possible."

"With first production in Romania and drilling results in Italy expected in the near term, we are delivering on our objective to expose our shareholders to value trigger events and I look forward to providing further updates in due course," he added.

As of 0950 GMT, shares had soared 39.13% to 0.640p.