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

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RNS Number : 6287Q  Prospex Energy PLC  28 January 2026

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

 

 

28 January 2026

 

Prospex Energy PLC

("Prospex" or the "Company")

 

Italy: Selva Malvezzi Production Concession

 

Ongoing Consistent Production at PM-1 and Selva Malvezzi 3D Geophysical
Campaign

Q4 2025 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 Q4-2025 activity
report for the period ending 31 December 2025.  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

·   Consistent well performance from Podere Maiar-1 ("PM-1") for the
quarter confirming production expectations and driving continued strong
operating cashflows

·    Focus for the next stages of development is the wells at Casale Guida
1d, Ronchi 1d, Selva Malvezzi 1d and Bagnarola 1d

·    EIA and development programme for the four new wells is currently
being updated to incorporate further progress on Ministry recommendations

·   3D Geophysical survey field activities completed on time and under
budget as a result of careful planning and favourable weather

·    Work will deliver a high-resolution three-dimensional subsurface model
to support future field development planning and potential resource upgrades

 

Gas production and revenues from the PM-1 gas well in the Selva Malvezzi
Production Concession

 

 PM-1 Production Data                       Mar 2025 Quarter  Jun 2025 Quarter  Sept 2025 Quarter  Dec 2025 Quarter
                                            Q1-2025           Q2-2025           Q3-2025            Q4-2025
 Average gross daily production rate (scm)  74,716            79,783            78,795             79,220
 Quarterly net (37%) production (MMscm)     2,488,031         2,686,307         2,682,180          2,579,403
 Weighted average price (per scm)           € 0.50            € 0.39            € 0.37             € 0.33
 37% Revenue net to Prospex                 € 1,235,316       € 1,059,843       € 992,173          € 851,594

 

Mark Routh, Prospex's CEO, commented:

"The Selva Malvezzi concession continues to prove its investment value, with
the operator delivering a stable operating and financial result from the PM-1
gas well for the quarter and making solid progress as it looks to expand
production through the development of four new wells.  The successful
completion of a 3D geophysical survey on time and under budget is testament to
Po Valley Energy's disciplined work approach and we look forward to receiving
the results of this work programme in due course."

 

Operational Overview

 

Selva Malvezzi

The Selva Malvezzi Production Concession is an onshore natural gas asset in
the eastern Po Plain, Bologna province, Emilia-Romagna Region.  Granted in
July 2022, the 80.68 sq. km concession was carved out of the former Podere
Gallina Exploration Permit and includes the producing Podere Maiar gas field
alongside nearby gas prospects of Selva Malvezzi 1d, Casale Guida 1d, Ronchi
1d and Bagnarola 1d.

 

a)    PM-1 gas production and well management

Total gas production (100%) for Q4 2025 was 6.97 MMscm (2.58 MMscm net to
PXEN), generating revenue of €2.3 million for the quarter (€0.85 million
net to PXEN).  Cumulative gross production since first gas in July 2023 has
reached 65.6 MMscm from the C2 level, equating to approximately 95% of the
certified P1 reserves reported in the July 2022 CPR.

 

During the quarter, average daily production remained steady at around 80,000
scm/d, aside from 2 short periods of shutdown for facility maintenance and
slick line activities in early October and November 2025.  The facility was
shut down for 3 days during slick line activities and pressure buildup with
the well returning to production at approximately 80,000 scm/d on 5 November
2025.

 

Gas sales commenced under a new agreement from 1 October 2025, with Hera
Trading, part of the Hera S.p.A. group.

 

Royalty expenses (on gas production sales) are accrued for the quarter at
€144,500 (€704,500 year to date).  Royalties are payable in Q2-2026
following assessment by relevant authorities in respect of the sales for the
year to 31 December 2025.

 

Summary of gas production at PXEN's 37%-owned Podere Maiar - 1 (PM-1) gas
facility in the Selva Malvezzi Production Concession:

 

                    Sep 2025      Oct 2025    Nov 2025    Dec 2025    Dec 2025      Year To Date

                    Quarter                                           Quarter
 Production (scm)
 PM-1 - 100%        7,249,134     2,407,653   2,081,632   2,482,073   6,971,358     28,205,191
 PM-1 - PXEN 37%    2,682,180     890,832     770,204     918,367     2,579,402     10,435,921
 Revenue (€)
 PM-1 - 100%        €2,681,550    €818,252    €701,115    782,238     €2,301,605    €11,186,444
 PM-1 - PXEN 37%    €992,174      €302,753    €259,413    €289,428    €851,594      €4,138,986
 Average gas price  €0.37         €0.34       €0.34       €0.32       €0.33         €0.40

 €/scm

 

b)    3D Geophysical Survey

Po Valley Energy completed the 3D geophysical data acquisition over the Selva
Malvezzi concession area.  The programme covered approximately 140 sq. km.
 After laying out 8380 wireless geophones, data acquisition commenced on 13
November 2025 using single sweeps from four Vibro-seis trucks operating
simultaneously in separate quadrants.  The data acquisition was completed on
time and under budget, benefitting from unusually dry weather for November,
but its success was driven by extensive planning and outstanding execution by
contractors, Geotec for permitting and Geofyzika Torun ("GT") for acquisition
& data recording, and PVO technical team.

 

The data acquired is being collated and prepared by GT for the next data
processing phase over the coming months.  This work will deliver a
high-resolution three-dimensional subsurface model to support future field
development planning and potential resource upgrades at Selva Malvezzi.
 Subsequent interpretation of the data will be done in-house.  Po Valley
Energy is targeting communication of these results with the market in Q2-2026.
 The data acquired will be instrumental in fine-tuning the 4 well development
programme in this licence.

 

c)    Casale Guida 1d, Ronchi 1d, Bagnarola 1d, Selva Malvezzi 1d wells

The key area of focus for the Joint Venture with the next stages of
development is at Casale Guida 1d (Selva North discovery), Ronchi 1d (South
Selva discovery), Selva Malvezzi 1d (East Selva prospect) and Bagnarola 1d
(Riccardina prospect), all of which are located within the Selva Malvezzi
Production Concession.  The Environmental Impact Assessment ("EIA") covering
the drilling, development, construction and production phases of the four
wells filed in December 2024, is under review in order to incorporate
recommendations and amendments from the Ministry and also an update of the
project which includes the full scope of potential works and impacts
(treatment facilities, pipelines, Podere Maiar plant upgrade).  The
specialist studies requested by the EIA commission are in progress and
expected to be submitted to the Ministry in Q2 2026.

 

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

Andrew Raca (Corporate Finance)
 Neil Passmore                     Hannam & Partners             Tel: +44 (0) 20 7907 8500

 Leif Powis
 Ana Ribeiro / Charlotte Page      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 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.

 Appendix

 

Figure 1: Selva Malvezzi Production Concession

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