REG - Prospex Energy PLC - Approval of 3D Seismic Campaign

Prospex EnergyAnnouncement

28/01/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250128:nRSb8641Ua&default-theme=true

RNS Number : 8641U  Prospex Energy PLC  28 January 2025

Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas

 

28 January 2025

 

Prospex Energy plc

("Prospex" or the "Company")

 

Italy: Selva Malvezzi Production Concession

 

Approval of 3D Seismic Campaign

 

Prospex Energy plc (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that Po Valley Energy
Limited (ASX: PVE) ("Po Valley Energy", "Po Valley", "PVE") has successfully
obtained regional approval ("INTESA") from the Emilia Romagna Regional Council
to commence its works under the planned 3D seismic campaign. This campaign
covers the entire Selva Malvezzi Production Concession Area (the "Concession")
and is an integral part of the ongoing development programme, which envisages
the drilling of four new wells on the Concession, building upon the current
Podere Maiar-1 well, which produced 7.02 MMscm of gas (2.6 MMscm net to
Prospex) and gross revenue of €2.76 million (€1.02 million net to Prospex)
during Q3‑2024.  Po Valley Operations Pty Limited ("PVO"), a wholly owned
subsidiary of PVE, is the operator of the Concession (the "Operator"), which
has a 63% working interest, while Prospex has the remaining 37% working
interest.

 

The granting of the Regional INTESA is an important step in the authorisation
process, which will complete with the issuing of a formal decree from the
Ministry of Environment and Energy Security once all documentation has been
verified. This formal decree is expected imminently.

 

In anticipation of the INTESA, the Operator has completed all preliminary
works in relation to the design, planning and permitting of the campaign.
 Now with the grant of the INTESA, it will be able to commence the
formalisation of the permitting and agreements with landowners. As part of
these preparatory activities, the Operator participated in constructive
co-ordination meetings with the relevant farmers associations and has worked
closely with relevant representatives to ensure that all the planned activity
aligns with industry best practices.

 

The nature of the 3D seismic campaign and the technology that will be used is
purposefully designed to ensure that the environmental footprint is negligible
and can be carried out quickly.  The campaign is expected to take no more
than three weeks.  Funding for this 3D seismic campaign is fully covered from
accumulated production income.

 

Once the seismic data has been acquired, the dataset will be processed and
interpreted in-house with the aim of optimising the subsurface drilling
locations targeted by the planned four new wells on the Concession.  The
Environmental Impact Assessment to obtain the permits to drill these four new
wells was lodged with the Ministry of Environment and Energy Security on 24
December 2024.

 

The Company will provide further updates on relevant developments to the 3D
seismic campaign as the activity is progressed.

 

Mark Routh, Prospex's CEO, commented:

"I am very pleased to report that Po Valley Energy, the operator of our Selva
Malvezzi Production Concession, has received approval from the local regional
authorities to proceed with the 3D seismic acquisition programme.  This is a
crucial step in achieving full regulatory approval for the campaign so that
acquisition can commence very shortly.

 

"This new 3D seismic dataset will be acquired and processed early this year in
order to optimise the subsurface drilling targets for four planned wells - two
development wells into structures classified as contingent resources, North
Selva and South Selva, and two exploration wells classified as prospective
resources, East Selva and Riccardina.  These wells, which are targeting a
total of 88 Bcf gross (33 Bcf net to Prospex), are anticipated to receive
permits to drill in the second half of 2025."

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

 

* * ENDS * *

 

For further information, please contact:

 

 

 Mark Routh                        Prospex Energy PLC            Tel: +44 (0) 20 7236 1177
 Ritchie Balmer                    Strand Hanson Limited         Tel: +44 (0) 20 7409 3494

Rory Murphy

David Asquith                    (Nominated Adviser)
 Andrew Monk (Corporate Broking)   VSA Capital Limited           Tel: +44 (0) 20 3005 5000

Andrew Raca (Corporate Finance)
 Ana Ribeiro / Charlotte Page      St Brides Partners Limited    Tel: +44 (0) 20 7236 1177

Further information on the Company can be found on its website at
www.prospex.energy (http://www.prospex.energy) .

 

Notes

Prospex Energy PLC is an AIM quoted investment company focused on high impact
onshore and shallow offshore European opportunities with short timelines to
production.  The Company's strategy is to acquire undervalued projects with
multiple, tangible value trigger points that can be realised within 12 months
of acquisition and then applying low-cost re-evaluation techniques to identify
and de-risk prospects.  The Company will rapidly scale up gas production in
the short term to generate internal revenues that can then be deployed to
develop the asset base and increase production further.

 

About Selva:

 

The Selva Malvezzi Production Concession is in the Po Valley region of
northern Italy.  The concession contains the Selva gas-field as well as
exciting exploration and development opportunities.  The Podere Maiar-1 well
at Selva was completed in December 2017 and successfully found a commercial
gas accumulation up-dip of the previous wells on the Selva field.  The
Company has a 37% working interest in the Production Concession held via
Prospex's two wholly owned subsidiaries, PXOG Marshall Ltd (17% of the
Licence) and UOG Italia Srl (20% of the Licence).

 

The Selva Malvezzi Production Concession holds independently verified 2P gross
proven reserves of 13.4 Bcf (5.0 Bcf net to Prospex at 37% WI) in Selva, gross
Contingent 2C Resources of 14.1 Bcf (5.2 Bcf net) and a further 88.2 Bcf of
gross Best Estimate Prospective Resources (un-risked) (32.6 Bcf net).( 1 )

 

An independent Competent Person's Report of the Podere Gallina Licence which
was converted into the Selva Malvezzi Production Concession at first gas in
July 2023, was prepared by CGG Services (UK) Limited in July 2022 on behalf of
the joint venture.( 1 ) It attributed a total of 379 MMscm (13.4 Bcf) gross 2P
reserves for the Selva redevelopment project.

 

References:

 1  Source: "Competent Person's Report Podere Gallina Licence, Italy" prepared
by CGG Services (UK) Limited in July 2022 : https://bit.ly/44VF02A
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbit.ly%2F44VF02A&data=05%7C01%7Cana%40stbridespartners.co.uk%7Ce27db61066ba4edeed3f08db94f7d5a5%7C48b7268319d344289c4b73cf144d89ed%7C1%7C0%7C638267564391602202%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=glSh9awfUUAreAZfLeRjoo%2FtRCIsIW2TSML5zO%2FUkew%3D&reserved=0)

 

Glossary:

scm                        Standard cubic metres

scm/d                    Standard cubic metres per day

MMscm                 Million standard cubic metres

Bcf                        Billion standard cubic feet

MMscfd                 million standard cubic feet per day

MWh                     Mega Watt hour

TTF                       The 'Title Transfer Facility' - a
virtual trading point for natural gas in the Netherlands.

 

Qualified Person Signoff

In accordance with the AIM notice for Mining and Oil and Gas Companies, the
Company discloses that Mark Routh, the CEO and a director of Prospex Energy
plc has reviewed the technical information contained herein.  Mark Routh has
an MSc in Petroleum Engineering and has been a member of the Society of
Petroleum Engineers since 1985.  He has over 40 years operating experience in
the upstream oil and gas industry.  Mark Routh consents to the inclusion of
the information in the form and context in which it appears.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  REAEAEFXASLSEAA