Prospex Energy says Viura production restart 'imminent'

(Sharecast News) - Prospex Energy said in an update on Monday that production at the Viura gas field in Spain is set to resume shortly, following the deployment of a workover rig to repair a leak in the Viura-1B well. The AIM-traded company, which holds a 7.24% effective interest in the field through its 7.5% stake in operator Heyco Energia Iberia, confirmed the rig was now on site and operational.

It said the Viura-1B well had been shut in since April due to a leak in the completion tubing that required intervention.

Prospex is currently entitled to 14.47% of production income from the Viura field until it recovers its capital investment - estimated at around £8m - along with accrued interest of 10% per annum.

The firm said it expected the reinstatement of production to be imminent, marking a return to normal operations at the Spanish onshore gas asset.

"This is good news from Heyco that the planned workover is on target to deliver the resumption of production from the Viura field later this month," said chief executive officer Mark Routh.

"I will continue to keep shareholders updated with regular progress reports as the well interventions proceed."

At 1503 BST, shares in Prospex Energy were up 3.89% at 5.61p.

Reporting by Josh White for Sharecast.com.