Italian Gov. Approval ! Mr. Byron Coulthard reports
ALEANNA RESOURCES RECEIVES NATURAL GAS PRODUCTION APPROVAL IN ITALY
BRS Resources Ltd.'s AleAnna Resources LLC has received the final approvals from the Italian Ministry of Environment and the Italian Ministry of Heritage and Culture on the production concession application for the Gradizza natural gas field development. BRS is active in Italy through its ownership in AleAnna.
These approvals are the last requirement before the Italian Ministry of Economic Development issues the final production concession decree. AleAnna expects the final production concession decree by late summer and anticipates production start-up before the end of the year.
The Gradizza-1 discovery well, drilled in November, 2013, is located in AleAnna's La Prospera permitted area in the eastern section of northern Italy's Po Valley. The well tested conventional natural gas at a stabilized rate of 800,000 cubic feet per day with 500 psi flowing tubing pressure on a 0.25-inch choke. No formation water, pressure decline or gas impurities were recovered during testing, and the bottom-hole pressure measured was approximately 1,200 psi.
AleAnna's conventional natural gas reserves in the Gradizza area as of Dec. 31, 2016, evaluated by independent petroleum engineering consultant Chapman Engineering, in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation handbook and National Instrument 51-101 -- standards of disclosure for oil and gas activities -- were as follows:
- Total proved developed non-producing marketable non-associated conventional gas reserves of 1,504 million cubic feet, estimated in the Pleistocene sands based on the logs and production tests of the Gradizza-1 well;
- Proved and probable marketable non-associated conventional gas reserves of 3,188 million cubic feet;
- Proved, probable and possible marketable non-associated conventional gas reserves of 5,617 million cubic feet.
AleAnna anticipates the need for two more wells to fully develop the field.
In March, 2017, AleAnna successfully drilled the Trava 2 exploration well, also located in eastern Po Valley. The Trava 2 well tested at rates up to 1.89 million cubic feet per day, with bottom-hole pressures exceeding 1,700 psi. Both the Trava 2 and successful Longanesi exploration wells are in the final stages of approval for production concessions.
"It has been a great year for AleAnna," said Byron Coulthard, chairman of BRS. "The Gradizza approvals are another indication of support for AleAnna's natural gas strategy and validate AleAnna as a natural gas producer in Italy."
AleAnna holds 31 exploration applications and permits for over 2.9 million acres in Italy. To date, AleAnna has also acquired 134,672 acres of 3-D geophysical data, making it the largest owner of on-shore 3-D geophysical data in Italy. Part of AleAnna's operating strategy is the use of high-resolution 3-D seismic technologies to image subsurface hydrocarbons to more efficiently high-grade prospects while reducing environmental impact and risk.
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