REG - Prospex Energy PLC - Italy: Selva Field Development

Prospex EnergyAnnouncement

31/01/2024 12:30

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RNS Number : 5605B  Prospex Energy PLC  31 January 2024

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

 

31 January 2024

 

Prospex Energy PLC

("Prospex" or the "Company")

 

Italy: Selva Malvezzi Production Concession

 

Quarterly Activities Report for the Period Ended 31 December 2023

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to provide an activity report from
the Selva Malvezzi production concession in Italy following the publication of
the quarterly report by Po Valley Energy Limited ("Po Valley Energy") (ASX:
PVE).  Po Valley Operations Pty Limited ("PVO") a wholly owned subsidiary of
PVE is the operator of the Selva Malvezzi production concession, which has a
63% working interest, while Prospex has the remaining 37% working interest.

 

Highlights

·    The Podere Maiar-1 well at Selva ("PM-1") has performed very
consistently during the confirmatory program carried out in Q4 2023.

·    Production levels were tested at various rates from ~42,000 scm/d to
~62,000 scm/day during the quarter.

·    Following favourable final test results in January, production has
been set to ~78,000-80,000 scm/d post-quarter end.

·    PM-1 is supplying the gas to BP Gas Marketing under an 18-month
supply agreement.

·    Gas prices remain volatile with the current TTF spot price of
~€0.325/scm which is ~19% lower than the €0.40/scm weighted average price
received during the quarter.

·    Quarterly production on a 100% basis was 4,180,015 scm of gas
(1,546,605 scm net to Prospex) and revenue for the quarter ending 31 December
2023 on a 100% basis was €1,773,302 (€656,122 net to Prospex).

·    The operator is progressing with the other projects in the Selva
Malvezzi production including very positive interactions with local landowners
and progressing the permitting process with the regulatory authorities.
Following a successful project of reprocessing the existing 2D seismic lines
in the production concession, the Joint Venture is now evaluating the
potential for a new seismic acquisition programme over the licence area in
order to optimise the drilling programmes of the identified contingent
resources at Selva North, Selva South and the East Selva and Riccardina
prospects.

 

 

Mark Routh, Prospex's CEO, commented:

"The operator of our Selva Malvezzi production concession, Po Valley Energy,
continues with the sound reservoir management of the asset.  The ongoing
monitoring and maintenance of the production facilities and the well
performance ensures it not only delivers the optimum gas production rates but
moreover guarantees safe and reliable operations.

 

"I look forward to updating shareholders as we 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 and Riccardina into proved, developed and
producing reserves."

 

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 (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).( 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/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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