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

Prospex EnergyAnnouncement

30/05/2023 07:15

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RNS Number : 8971A  Prospex Energy PLC  30 May 2023

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

 

30 May 2023

 

Prospex Energy PLC

('Prospex' or the 'Company')

 

Italy: Selva Field Development Update

Successful Recovery of €757,000 Performance Bond Funds

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that on behalf of the
Joint Venture, Po Valley Energy Limited has recovered the €757,000
performance bond funds deposited with SNAM, the Italian national Transmission
System Operator.

 

Po Valley Operations Pty Limited ("PVO"), a wholly owned subsidiary of Po
Valley Energy Limited (ASX: PVE) is the Operator of the Selva Malvezzi
production concession with 63% ownership interest and Prospex has the
remaining 37% working interest in the Joint Venture.

 

Highlights

·    PVO has successfully recovered the €757,000 performance bond
(€280,090 net to PXEN) previously deposited with the Italian national
Transmission System Operator SNAM

·    The return of the bond follows the completion of the SNAM pipeline
tie in connection, Gas Sales Agreement and transportation arrangements

·    First gas supply from the Podere Maiar - 1 well in the Selva field is
contingent upon final Ministry approval after final operation and safety
inspection of the completed gas treatment plant

 

On Monday 29 May 2023, Po Valley Energy Limited (ASX: PVE) announced that the
process to recover the performance bond funds deposited with SNAM had been
finalised.  The amount reimbursed from SNAM is €757,000 with €280,090 net
to PXEN.  This follows the completion of the pipeline tie in connection to
the newly built Podere Maiar - 1 (PM-1) gas treatment facility in the Selva
Malvezzi Production Concession, located in the Emilia Romagna region (Po River
Valley area in the north of Italy).

 

The return of the bond deposited with SNAM was conditional on completion of
the SNAM grid connection and the Gas Sales Agreement, announced on 13 February
2023.

 

Initial production of PM-1 gas is contingent on Ministry final approval after
the sign-off of the final operation and safety inspection.  The final
inspection has been delayed due to severe flooding throughout the Emilia
Romagna region.  Po Valley Energy has been informed that the inspection will
take place as soon as the Fire Department has attended to urgent priorities.
 The gas treatment facility and preparatory activities for first gas have not
been affected by the flooding.

 

Mark Routh, Prospex's CEO, commented:

"The team at Po Valley continues to deliver on behalf of the Joint Venture and
the new gas plant facility and grid connection has been approved by the
Italian national Transmission System Operator.  The return of the SNAM Bond
is an expected but welcome boost.

 

"The anticipated flow of gas from Selva by the end of May has been delayed on
account of the emergency situation in the Emilia Romagna region of the Po
Valley, where the emergency services are fully focussed on dealing with the
catastrophic flooding in the area.  Fortunately, the new plant and the well
site has not been affected by the flooding.

 

"The delay of the final operation and safety inspection due to the flooding is
entirely beyond the control of the team in Italy.  The Operator has been
assured that the necessary inspections by the fire department will take place
as soon as resources become available."

 

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 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 northern Italy.  The
licence contains the currently shut‑in 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 Podere Gallina licence held via Prospex's
two wholly owned subsidiaries, PXOG Marshall Ltd (17% of the Licence) and UOG
Italia Srl (20% of the 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 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 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/3JASCc2
(https://bit.ly/3JASCc2) ]

 

Glossary:

scm                        Standard cubic metres

MMscm               Million standard cubic metres

Bcf                          Billion standard cubic
feet

MMscfd               million standard cubic feet per day

MWh                     Mega Watt hour

 

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.

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