REG - Prospex Energy PLC - Italy: Selva Malvezzi - Q3 2025 Activity Report

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RNS Number : 5887F  Prospex Energy PLC  31 October 2025

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

 

31 October 2025

 

Prospex Energy PLC

("Prospex" or the "Company")

 

Italy: Selva Malvezzi Production Concession

 

Q3 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 Q3-2025 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

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

·     Transition to a new offtake agreement with a new supply contract
commencing 1 October 2025 with Hera Trading.

·     Updated EIA and development program for Casale Guida-1d, Ronchi-1d,
Bagnarola-1d, and Selva Malvezzi-1d, incorporating further progress on
ministry recommendations.

·     Field activities scheduled for Q4-2025 for the 3D geophysical survey
for the Broader Selva Concession Development Program, with permitting
processes and landowner agreements near completion.

 

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

 

 PM-1 Production Data                       March 2025 Quarter  June 2025 Quarter  September 2025 Quarter  Year to Date
                                            Q1-2025             Q2-2025            Q3-2025                 Q1-Q3-2025
 Average gross daily production rate (scm)  74,716              79,783             78,795                  77,780
 Quarterly net (37%) production (scm)       2,488,031           2,686,307          2,682,180               7,856,518
 Weighted average price (per scm)           € 0.50              € 0.39             € 0.37                  € 0.42
 37% Revenue net to Prospex (€)             € 1,235,316         € 1,059,843        € 992,173               € 3,287,333

 

Mark Routh, Prospex's CEO, commented:

"I am very pleased to report that Po Valley Energy, the operator of the Selva
Malvezzi Production Concession, continues to deliver steady and reliable gas
production from the PM-1 well with the related ongoing cash generation with
consistent production averaging ~80,000 scm per day during the period.

 

Meanwhile, the operator has continued to make progress on the permitting
front, with EIA and development programme revisions underway for the proposed
4 new wells and the upcoming 3D geophysical survey in December."

Operational Overview

Selva Malvezzi

Selva is an onshore natural gas field located in the eastern part of the Po
Plain, in the Bologna province of the Emilia Romagna Region.  Awarded in July
2022, the Selva Malvezzi Production Concession covers 80.68km(2) carved out
from the former Podere Gallina Exploration Permit.

 

It includes the Podere Maiar Gas field (in production) and the gas prospects
Selva Malvezzi (East Selva), Casale Guida (Selva North), Ronchi (Selva South)
and Bagnarola (Riccardina).

 

1.    PM-1 gas production and well management

Total production (100%) in Q3 2025 was 7,249,134 scm, generating revenue of
€2,681,549 (100%) for the quarter.  Total gas production (100%) since
initial flow now stands at 58,633,799 scm from the C2 level, representing ~84%
of the total (100%) P1 reserves of C2 Level certified in the July 2022
CPR( 1 ) (PXEN share of the gross amounts quoted above is 37% of total).

 

Daily production was consistent at ~80,000scm/day, with the exception of the
final days in September with a routine alumina replacement at the gas plant
undertaken.  The well re-opened on 2 October 2025 with production resuming at
~80,000 scm/day.

 

The quarter has seen the conclusion of the Gas Sales Agreement with BP Gas
Marketing, with final production supplied at the end of September.  From 1
October 2025, gas is supplied under the new Gas Sales Agreement with Hera
Trading, a group entity headed by Hera S.p.A. (refer RNS announcement RNS: 21
August 2025
(https://polaris.brighterir.com/public/prospex_energy_plc/news/rns/story/r7q1kzw)
).

 

Net government royalties for the quarter of €99k (€329k year to date) on
the production gas sales are accrued and would be due for payment in Q2 of
2026.

 

2.    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 lie within the Selva Malvezzi Production
Concession.

The drilling programs for the four new drilling projects were submitted to the
UNMIG department of the Italian Ministry of Environment and Energy Security
(MASE) for drilling authorisation in September 2024 with an Environmental
Impact Study (EIA) covering the drilling, development and production phases of
the four wells filed in December 2024 reported last quarter.  The EIA
technical commission of the Ministry (MASE) requested further studies with
observations and recommendations to be addressed.

 

The operator has progressed a new environmental study incorporating
recommendations and amendments from the EIA technical commission which
include, amongst others, addressing the location of wells to mitigate any
flooding concerns for the Selva Malvezzi-1 well site location and addressing
visual and noise impact concerns of the Casale Guida and Ronchi well sites.

 

Field work, including geophysical acquisition, on the approved 3D geophysical
survey over the Selva Malvezzi Production concession, is on track to commence
in Q4/2025.  The permitting process and execution of landowner access
agreements were near completion at the end of this quarter; a lengthy process
with over 1,800 landowners across the Production Concession area.

 

Expenditure for the quarter in relation to the above progression of work
programs on the Selva prospects was ≈€13k (net to PXEN), with expenditure
expected to increase over the next two quarters as the Company implements the
3D geophysical survey and completes the EIA study and drilling programs of the
new wells.

 

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
 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://bit.ly/44VF02A)

 

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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