Sound Oil, an oil and gas company based in Italy, has reported the success of its initial operation at the Rapagnano field, where flow rates and pressure are in line with its expectations.
The firm said that once it had cleared the site the Rapagnano-1 well was re-entered and it was able to complete the necessary operations.
The well was flowing at a confirmed stabilised rate of 0.5m standard cubic feet per day.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The gas is also confirmed as dry, with no trace of water from the reservoir, the group added.
James Parsons, Sound Oil's Chief Executive Officer, said: "The company continues on track to achieve the strategic milestone of first commercial gas, having successfully re-entered the well and established a stable flow rate. This initial cash inflow will make a substantial contribution to overhead costs and permanently establishes the Company as a gas producer.
"This is the first step in building a track record of operational success. The company will now focus on finalising the well test and preparing for the forthcoming Nervesa appraisal well."
Following the well test the company plans to demobilise the equipment to enable the construction of a short export pipeline to the nearby distribution grid
It expects first commercial production by the end of January 2013.
The share price rose 1.52% to 8.38p by 09:20.
NR
-
Going part-time could leave a £58,000 hole in your pension: how to plug the gapThere are many reasons for switching to part-time work, but some savers don’t consider the impact on their pension until it is too late
-
Three bargain investment trusts to add to your portfolioThese three investment trusts are bargains compared to their net asset value (NAV), but one fund analyst thinks the deep discounts are unwarranted.
