Zenith, the energy company with proven revenue generating production, exploration, and development assets in Africa and Europe, announces that it is finalising plans to reactivate the Sant'Andrea natural gas production concession located in onshore Italy, with production expected to commence in 4Q22.
The Concession covers 164.32 km2 and is located in the Veneto region of North-Eastern Italy. It was first granted in 1992 and is due to expire in 2027. Two wells have been drilled within the Concession, namely S. Antonio-1 and Anzano-1.
The Company plans to reactivate the S. Antonio-1 well, with an expected initial production rate of 1300 m3 of natural gas per day. Monthly fixed production costs are expected to be approximately €3000 with estimated net revenues of approximately €40 000 to €50 000 per month.
Zenith, via its Italian subsidiary, holds a 40% interest in the Concession. The Company's partners in Sant'Andrea have communicated that they do not intend to fund the reactivation of the Concession. Zenith will therefore receive full entitlement to the production revenue to be received from Sant'Andrea, as well as bearing the full costs associated with reactivation of the Concession (approximately €20 000).
Luca Benedetto, Chief Financial Officer, and Managing Director of Italian operations, commented: "We have embarked on a gradual strategy of optimising our Italian portfolio, parts of which have remained dormant for some time, in the context of the increasing necessity for European domestic energy security and a highly encouraging pricing climate. It is our intention to continue to assess other, potentially much larger, opportunities for development within our Italian portfolio in the foreseeable future."
Read the latest issue of Oilfield Technology in full for free: Summer 2022
Oilfield Technology’s second issue of 2022 begins with analysis from Rystad Energy focusing on the upstream industry in Southeast Asia. The rest of the issue is dedicated to features covering advances in drilling, rig design, software and AI, corrosion and maintenance, artificial lift, flow control, and more.
Exclusive contributions come from Vink Chemicals, Archer, Taurex Drill Bits, Vysus, EM&I, SparkCognition, TÜV Rheinland Group, TGT Diagnostics, ChampionX, and Baker Hughes, as well as a guest comment from Patrick Long, Opportune.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/14072022/zenith-to-reactivate-santandrea-concession-in-italy/
You might also like
The Norwegian Petroleum Directorate (NPD) has conducted a mapping of gas resources that, for various reasons, have yet to be developed. Several of these discoveries could be produced in a manner that is profitable from a socio-economic perspective.