REG - Prospex Energy PLC - Italy: Selva Field Development

Prospex EnergyAnnouncement

19/01/2024 07:00

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RNS Number : 2112A  Prospex Energy PLC  19 January 2024

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

 

19 January 2024

 

Prospex Energy PLC

("Prospex" or the "Company")

 

Italy: Selva Field Development

 

Optimal flow rates confirmed at Podere Maiar-1 Gas Well Site

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to provide an operational update
from the Podere Maiar-1 ("PM-1") well site of the Selva field, which is
operated by Po Valley Operations Pty Limited ("PVO"), a wholly owned
subsidiary of Po Valley Energy Limited ("Po Valley Energy") (ASX: PVE).

 

Po Valley Energy has a 63% working interest of the Selva Malvezzi production
concession, while Prospex has the remaining 37% working interest.

 

Highlights

 

·    After six months of strong gas production, PVO has confirmed that the
well is continuing to perform as expected.

·    The commissioning and testing period undertaken by PVO has defined
optimal well performance and PVO has confirmed that the testing was
successfully undertaken at various production levels.

·    Slick line work programmes have been completed to monitor well
behaviour and any accumulation of debris.

·    Production volumes testing will continue over the next four weeks at
~78,000 scm/d to 80,000 scm/d to be followed by another slick line operation
programme before a long-term flow rate is set.

·    This confirmatory period allows the PVO team to determine the optimal
flow rate to ensure no debris accumulation and to establish the most efficient
rate of production for the long term.  As a precaution, a Surface Sand
Detector is expected to be installed which will provide added protection to
the gas plant.

·    Further upside potential at the Selva Malvezzi production concession
is advancing at pace, with the operator progressing agreements with local
landowners and the permitting process with the regulatory authorities in order
to deliver the drilling programmes at Selva North, South and East.

 

 

Mark Routh, Prospex's CEO, commented:

"The operator of our Selva Malvezzi production concession, Po Valley Energy,
is continuing with the diligent monitoring and maintenance of the well
performance and production facilities to ensure a safe and reliable income
stream from the asset.

 

"Prospex is working together with the Po Valley Energy team and using the
production income to progress the necessary activities to secure the
development drilling programmes for the contingent resources at Selva North
and Selva South and, for the target of converting prospective resources at
East Selva into proved, developed and producing reserves in the near term.

 

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
 Lional Therond / Daniel Fox-Davies              Fox-Davies Capital Limited    Tel: +44 (0) 20 3884 8450
 Andrew Monk (Corporate Broking)                 VSA Capital Limited           Tel: +44 (0) 20 3005 5000

Andrew Raca / Alex Cabral (Corporate Finance)
 Ana Ribeiro / Susie Geliher                     St Brides Partners Limited    Tel: +44 (0) 20 7236 1177

 

 

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 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 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).( 2 )

 

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.( 2 ) It attributed a total of 379 MMscm (13.4 Bcf) gross 2P reserves
for the Selva redevelopment project.

 

References:

 1  Source: ICE website forward curve gas prices for the TTF.
https://www.ice.com/products/27996665/Dutch-TTF-Gas-Futures/data?marketId=5360399
(https://www.ice.com/products/27996665/Dutch-TTF-Gas-Futures/data?marketId=5360399)

 2  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.

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