REG - Prospex Energy PLC - Q1 2025 Activity Report

Prospex EnergyAnnouncement

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RNS Number : 1504H  Prospex Energy PLC  02 May 2025

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

 

2 May 2025

 

Prospex Energy plc

("Prospex" or the "Company")

 

Italy: Selva Malvezzi Production Concession

 

Q1 2025 Activity Report

Steady Gross Production and Revenues

 

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 ("PVE") (ASX: PVE) of its Q1‑2025 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.

 

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

 

 PM-1 Production Data                       Mar 2025 Quarter
                                            Q1-2025
 Average gross daily production rate (scm)  77,292
 Quarterly net (37%) production (MMscm)     2,488
 Weighted average price (per scm)           € 0.50
 37% Revenue net to Prospex ('000)          € 1,235

 

Highlights

·    Steady gas production from the Podere Maiar-1 well at Selva ("PM 1")
for the quarter averaging 77,292 scm/d continuing to meet predicted levels of
production.

·    Robust gas prices with the average weighted gas sales price for the
quarter at €0.50/scm due to strong market conditions.

·    Gross quarterly production of 6.724 MMscm of gas (Q4‑2024: 7.323
MMscm), with 2.488 MMscm net to Prospex (Q4‑2024: 2.709 MMscm).

·    Gross revenue for the quarter of €3.338 million (Q4‑2024: €3.38
million), with €1.235 million net to Prospex (Q4‑2024: €1.25 million)

·    PM-1 continues to sell gas to BP Gas Marketing.

 

Broader Selva Development Program - Multi-well drilling program and 3D
geophysical survey

·    Drilling applications for four new wells in the Selva Malvezzi
production concession and Environmental Impact Studies were submitted in 2024
with relevant departments.  The operator awaits the outcome of these and
expects further interaction with the relevant departments within the Ministry
will be required as is standard in these processes.

·    Preparation for the 3D geophysical survey acquisition on the Selva
Malvezzi Production Concession progressed during the quarter.  Regional
INTESA approval to commence work was received during the period along with
final authorisation from MASE for the geophysical campaign , which was
received post quarter end.

·    Field activities including the seismic acquisition and campaign are
planned for the end of September, beginning of October 2025 as per guidance
received from the landowners and relevant Farmer's associations to accommodate
the late summer harvest.

 

Mark Routh, Prospex's CEO, commented:

"I am pleased to report that Po Valley Energy, the operator of our Selva
Malvezzi Production Concession continues to maintain, safe and steady gas
production and revenues.

 

"The operator continues with the preparatory work to drill four further wells
on the concession on which the permit applications are progressing well.
Also, it is good to have confirmation of the timing of the planned 3D seismic
survey to be acquired across the concession in September/October 2025.  This
survey will be acquired, processed and interpreted quickly in order to
optimise the subsurface drilling targets of the four new wells.

 

"The Company's investment in the Selva Malvezzi production concession
continues to deliver strong value to shareholders."

* * ENDS * *

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

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 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, which produces
from the Podere Maiar-1 well, 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 )

The operator has decided to re-name the discoveries and prospects on the
concession.  North Selva is to be renamed Casale Guida 1d, South Selva is to
be renamed Ronchi 1d, East Selva is to be renamed Selva Malvezzi 1d and
Riccardina is to be renamed Bagnarola 1d.

 

The drilling programmes for the four new drilling projects at Casale Guida 1d
(North Selva), Ronchi 1d (South Selva), Selva Malvezzi 1d (East Selva) and
Bagnarola 1d (Riccardina) were filed for drilling authorisation to UNMIG
department of the Italian Ministry of Environment and Energy Security (MASE)
in September 2024.  The Environmental Impact Study for drilling, development
and production of the four wells was submitted in December 2024.

 

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)

 

 

Qualified Person Signoff

In accordance with the AIM note 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 more than 40 years of 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.

Glossary:

Bcf                            Billion standard
cubic feet

Bcm                          Billion standard cubic
metres

Boe                           Barrels of Oil
Equivalent (where 1 MMBoe = 5.8 Bcf)

MMBoe                     Million Barrels of Oil Equivalent

mcf                           Thousand standard
cubic feet

MMscf                      Million standard cubic feet

MMscfd                     Million standard cubic feet per day

MMscm                     Million standard cubic metres

MMscm/d                  Million standard cubic metres per day

MWh                          Mega Watt hour

scm                           Standard cubic metres

scm/d                        Standard cubic metres per day

TTF                           The 'Title Transfer Facility' - a
virtual trading point for natural gas in the Netherlands.

 

 

Appendix

Figure 1: Selva Malvezzi Production Concession & 3D Seismic Survey
Footprint

 

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