REG - Prospex Energy PLC - Italy: Selva Malvezzi Q1 2024 Activity Report

Prospex EnergyAnnouncement

03/05/2024 07:00

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RNS Number : 0928N  Prospex Energy PLC  03 May 2024

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

 

3 May 2024

 

Prospex Energy PLC

("Prospex" or the "Company")

 

Italy: Selva Malvezzi Production Concession

 

Q1 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 Q1 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 Q1 2024.

·    Average daily production for the quarter was in the order of ~80,000
scm/d.

·    A standard slickline operation in March 2024 confirmed strong
pressure build up confirming the average daily production rate for the
foreseeable future.

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

·    The weighted average gas sales price for the quarter was €0.30/scm
(~€29/MWh).

·    Gross Quarterly production was 6,385,255 scm of gas (2,362,544 scm
net to Prospex) and gross revenue for the quarter was €1,906,891 (€705,549
net to Prospex).

·    The operator is progressing the permitting process with the
regulatory authorities on the other projects in the Selva Malvezzi production
concession.

·    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.

 

Gas production at the PM-1 gas facility in the Selva Malvezzi Production
Concession for the quarter is shown in the table below:

 

 PM-1 Gas Production Q1 2024
 PM-1 Production (scm)       January 2024   February 2024  March 2024
 PM-1 - 100%                 1,940,940 scm  2,306,760 scm  2,137,555 scm
 PM-1 - 37% (Prospex share)  718,147 scm    853,501 scm    790,895 scm

Production has been consistent throughout the quarter averaging ~78,000 scm/d
to ~80,000 scm/d, with exception of days during which slickline operations
were undertaken.  During the quarter, the operator carried out three
slickline operations.  The first was conducted in early January 2024
confirming results from December 2023, the second was conducted at end of
January with the third programme completed in late March 2024.  All results
of bottom hole pressure and temperature readings in static conditions were in
line with expectations with ongoing monitoring for any debris undertaken to
ensure no accumulation issues were present.

 

Mark Routh, Prospex's CEO, commented:

"Po Valley Energy continues with safe and reliable operations at the Selva
Malvezzi production concession.

 

"We are actively advancing  the necessary activities to facilitate
development drilling programmes at Selva Malvezzi with the target of
converting the contingent resources at Selva North and Selva South and the
prospective resources at East Selva and Riccardina 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 / Charlotte Page                    St Brides Partners Limited    Tel: +44 (0) 20 7236 1177

 

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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