REG - Prospex Energy PLC - Italy: Selva Malvezzi Production Concession

Prospex EnergyAnnouncement

31/10/2024 07:00

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RNS Number : 3154K  Prospex Energy PLC  31 October 2024

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

 

31 October 2024

 

Prospex Energy PLC

("Prospex" or the "Company")

 

Italy: Selva Malvezzi Production Concession

 

Q3 2024 Activity Report

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to provide an update from the
Selva Malvezzi production concession in Italy following the publication by Po
Valley Energy Limited ("Po Valley Energy") (ASX: PVE) of its Q3 2024 activity
report.  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 continued to perform
consistently during Q3 2024.

·    Average daily production for the quarter Q3 2024 was 76,910 scm/d.

·    PM-1 continues to sell the gas to BP Gas Marketing under a 12-month
continuation of the offtake agreement.

·    Strong weighted average gas sales price for the quarter of
€0.39/scm (~€37/MWh) an increase on the previous quarter (€0.34/scm).

·    Gross Quarterly production was 7.02 MMscm of gas (2.6 MMscm net to
Prospex) and gross revenue for the quarter was €2.76 million (€1.02
million net to Prospex).

·    Routine slick line operation carried out in September 2024 with
results in line with expectations and confirming an average daily production
rate of 80,000 scm/day for the foreseeable future.

·    Four new drilling applications filed with the Ministry of Environment
and Energy Security at the end of September 2024.  All four wells are located
within the Selva Malvezzi Production Concession.

·    Environmental Impact Studies for these 4 new wells are well advanced
and on track for submission in Q4-24.  Upon submission, the Ministry of
Environment and Energy Security will commence their formal assessment.

·    Preparation for the 3D geophysical survey acquisition on the Selva
Malvezzi Production Concession was significantly progressed during the
quarter.  All environmental approvals have been received.  The geophysical
campaign will commence once final sign off from the regional authority is
received which is expected after the regional elections scheduled for the
second half of November 2024.

 

Gas production and revenues from the PM-1 gas facility in the Selva Malvezzi
Production Concession for the four quarters from Q4-2023 to Q3-2024 are shown
in the table below:

 

 PM-1 Production Data                       December 2023 Quarter  March 2024 Quarter  June 2024 Quarter  September 2024 Quarter
                                            Q4-2023                Q1-2024             Q2-2024            Q3-2024
 Average gross daily production rate (scm)  45,808                 69,976              74,904             76,910
 Quarterly net (37%) production ('000 scm)  1,546                  2,363               2,529              2,596
 Weighted average price (per scm)           € 0.40                 € 0.30              € 0.34             € 0.39
 37% Revenue net to Prospex ('000)          € 656                  € 706               € 855              € 1,020

 

 

Mark Routh, Prospex's CEO, commented:

"I am very pleased to report that Po Valley Energy, the operator of our Selva
Malvezzi Production Concession continues with sound and reliable operations
ensuring consistent and increasing income from the concession as gas prices in
Europe continue to rise.

 

"It is also very good news that the permits to drill the four further wells on
the concession have been submitted to the regulatory authorities and that
there has been positive progress on the permitting process for the 3D seismic
survey planned to be acquired from Q4-2024.

 

"I have been advised by the operational team at Po Valley Energy that the
recent flooding in the Emilia Romagna region in northern Italy has not
affected the area of the Selva Malvezzi Concession nor the SNAM pipeline
connection station."

 

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 / Tommy Jackson (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.

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