Prospex Oil and Gas Plc, the AIM quoted investment company, is pleased to announce that it has been informed by the operator, Raffles Energy S.R.L. (Raffles), that first gas production has commenced from the Bainet gas field (Bainet) in the Exploration Area of the EIV-1 Suceava Concession (Suceava), North East Romania. Prospex’s wholly-owned subsidiary PXOG Massey Limited holds a 50% non-operated interest in the 980 sq km Concession.
Gas from the Field is sold into the national grid run by Transgaz at the Romanian market prices of around €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 c.0.7mmscf/day. 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 2.2km flowline tie back to the existing production infrastructure. The Well was drilled to a total depth of 600m and encountered 9m of reservoir with 8m of net gas pay consisting of a good quality Sarmatian sandstone reservoir.
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.
