REG - Prospex Energy PLC - Italy: Selva Field Development Update

Prospex EnergyAnnouncement

21/09/2022 07:00

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RNS Number : 0629A  Prospex Energy PLC  21 September 2022

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

 

21 September 2022

 

Prospex Energy PLC

('Prospex' or the 'Company')

 

Italy: Selva Field Development Update

 

Po Valley secures rights to land title for Podere Maiar-1 well site and
pipeline procurement

 

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to note an announcement made by Po
Valley Energy Limited (ASX:PVE) ('Po Valley' or the 'Operator') released on
the ASX on Monday 19 September 2022 and provides an update on the Podere
Gallina Licence located in the Po Valley onshore in northern Italy, in which
lies the Selva gas field within the Selva Malvezzi Production Concession
('Selva').  The Company holds a 37% working interest in the Podere Maiar
licence with the Operator holding the remaining 63%.

 

Highlights

·    Po Valley has approved all payments to secure ownership of the land
for its Podere Maiar well site in Italy's Selva gas field

·    Italy's Institute of Services for the Agricultural Food Market
('ISMEA') has accepted Po Valley's application to obtain the well site land
ownership

·    All materials relating to the 1km gas pipeline have arrived on site
including the steel pipe

·    Expenditure relating to land titles and pipeline remain within budget

·    Podere Maiar is on track for first gas in early Q2 of 2023

 

Po Valley announced Monday that it is on track for first gas from the Podere
Maiar-1 well in Italy's Selva gas field after ISMEA accepted the Company's
application to land titles for the well site.

 

Po Valley received an official letter from the General Director of Italy's
ISMEA accepting its application for the land as well as services for the gas
pipeline and associated cables.  Payment to secure the land rights is on
budget and is being processed immediately (19 September 2022).  Once ISMEA
confirms the title, Po Valley will have complete access and control over the
land required to construct its gas treatment plant and pipeline at the Podere
Maiar-1 well site.

 

In addition, the 4-inch steel pipe has arrived on site and is being stored in
readiness for construction of the 1km gas pipeline that connects the Podere
Maiar-1 well to the National Gas Grid.

 

Po Valley continues to progress its application to the National Mining Office
for Hydrocarbons and Georesources ('UNMIG') and to the Fire Department for
approval for its operations and plans to request UNMIG approval to commence
preliminary works on the well site.

 

Mark Routh, Prospex's CEO, commented:

"We are extremely pleased that Po Valley has secured the land ownership at the
Podere Maiair-1 well site location and has purchased the land from several
different owners under which the 1 km 4-inch gas export pipeline will be
installed to connect the well to the National Gas Grid.  Procurement of the
steel pipe and related equipment for the tie-in work is complete and all
materials are now stored at the well site.

 

"Pleasingly, Po Valley was able to acquire the land and procure the materials
at or below our original cost estimates, ensuring that we're on schedule and
on budget to achieve first gas in the early part of the second quarter of
2023.  This will secure enhanced cash-flows from the sale of gas into a high
demand market.  This is clearly very good news for shareholders."

 

 

* * ENDS * *

 

 

 

For further information visit www.prospex.energy (http://www.prospex.energy)
or contact the following:

 

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

Rory Murphy
 Andrew Monk (Corporate Broking)               VSA Capital Limited         Tel: +44 (0) 20 3005 5000

Andrew Raca/Alex Cabral (Corporate Finance)
 Colin Rowbury                                 Novum Securities Limited    Tel: +44 (0) 20 7399 9427

Jon Belliss
 Susie Geliher                                 St Brides Partners Limited  Tel: +44 (0) 20 7236 1177

Ana Ribeiro

 

Notes

Prospex Energy PLC is an AIM quoted investment company focussed 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 Podere Gallina Licence is in the Po Valley region of Italy.  The licence
contains the currently shut‑in Selva gas-field as well as exciting
exploration 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 Podere Gallina licence.

The Podere Gallina Licence holds independently verified 2P gross 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 91.5 Bcf of gross Best
Estimate Prospective Resources (33.9 Bcf net).( 1 )

An independent Competent Person's Report of the Podere Gallina Licence was
prepared by CGG Services (UK) Limited in January 2019 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.

The CPR also attributed Best Estimate gross prospective (un-risked) gas
resources of 1,493 MMscm (52.7 Bcf) on the Podere Gallina Licence in three
separate structures.

References:

 1  Source: "Competent Person's Report Podere Gallina Licence, Italy" prepared
by CGG Services (UK) Limited in January 2019 https://bit.ly/3nZNfYf
(https://bit.ly/3nZNfYf) ].

 

Glossary:

scm                        Standard cubic metres

MMscm               Million standard cubic metres

Bcf                          Billion standard cubic
feet

MMscfd               million standard cubic feet per day

 

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.

 

The updated Corporate Presentation for Q3-2022 is available on the Company's
website at https://www.prospex.energy/home/ (https://www.prospex.energy/home/)

 

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