REG - Prospex Energy PLC - Selva Field: Completion of gas plant construction

Prospex EnergyAnnouncement

16/05/2023 08:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230516:nRSP5550Za&default-theme=true

RNS Number : 5550Z  Prospex Energy PLC  16 May 2023

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

 

16 May 2023

 

Prospex Energy PLC

('Prospex' or the 'Company')

 

Italy: Selva Field Development

Completion of gas plant construction and connection to gas grid

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that construction of
the gas plant at the Podere Maiar-1 wellsite of the Selva field in the Po
Valley, Italy has been completed.  The connection to the gas grid operated by
SNAM is also complete allowing the delivery of gas to the market as soon as
final operational and safety inspections are complete, which the operator, Po
Valley Energy anticipates by the end of May.

 

Po Valley Operations Pty Limited ("PVO"), a wholly owned subsidiary of Po
Valley Energy Limited (ASX: PVE) is the Operator of the Selva Malvezzi
production concession with 63% ownership interest and Prospex has the
remaining 37% working interest.

 

Highlights

·    Podere Maiar-1 ("PM-1") gas plant development is complete and ready
for commissioning

·    SNAM connections are complete, enabling delivery of PM-1 gas to the
SNAM gas grid in Italy

·    Commercial arrangements complete, allowing PM-1 gas to be delivered
under the gas supply agreement announced on 14 February 2023

·    With the SNAM connection and transmission arrangements finalised, Po
Valley Operations has initiated the process of recovering €757,000
performance bond funds (100% basis - €280,090 net to Prospex), previously
deposited with SNAM

·    PM-1 gas plant construction and development achieved with only minor
cost increases.  This result is particularly noteworthy given the current
inflationary environment and supply chain issues

·    First gas supply from PM-1 is contingent upon final operation and
safety inspection.  PVO anticipates this prior to the end of the month

The completion of SNAM connections and commercial arrangements paves the way
for the delivery of PM-1 gas to the SNAM grid in Italy.  With these
connections and arrangements in place, PM-1 gas can now be delivered under the
gas supply agreement, announced on 14 February 2023.

 

Additionally, the successful completion of the SNAM connection and
transmission arrangements has resulted in PVO initiating the process for the
recovery of the performance bond funds deposited with SNAM.  The amount
involved in this recovery process is €757,000 (100% basis), with €280,090
net to Prospex.

 

Construction and grid connection has been largely completed on schedule and
budget, with only a 3% cost difference to budgeted expenditure.  This amounts
to ~€132,000 (100% basis), €48,840 net to Prospex.  Given the global
supply chain concerns the joint venture is delighted with this outcome.

 

Initial production of PM-1 gas is contingent on the signoff of the final
operation and safety inspection.  PVO anticipates that this will occur before
the end of May 2023.

 

Mark Routh, Prospex's CEO, commented:

"I congratulate the team at Po Valley for delivering a safe and very
high-quality gas plant development.  This has been achieved by PVO and the
main contractor, TESI working with the SNAM construction engineers to install
the new gas processing plant and the construction and connection to the SNAM
operated national grid network.  This has in turn triggered the recovery of
the performance bond deposited with SNAM worth €280,090 to Prospex.

 

"I was fortunate to visit the well site at the same time as the PVE board in
late April and saw first-hand the high standards of installed equipment and
importantly the robust safety culture of the TESI and PVO teams.  The
development has been delivered on schedule and within our budgeted
contingency, which is a significant achievement with the ongoing supply chain
challenges facing the industry generally.  I look forward to updating
shareholders on the commissioning and delivery of first gas to the SNAM grid,
which the operator anticipates by the end of May."

 

 

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/Alex Cabral (Corporate Finance)
 Colin Rowbury                                 Novum Securities Limited    Tel: +44 (0) 20 7399 9427

Jon Belliss
 Susie Geliher                                 St Brides Partners Limited  Tel: +44 (0) 20 7236 1177

Ana Ribeiro

 

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:

 

 PM - 1 gas plant complete and ready for commissioning

 

 

The Podere Gallina Licence is in the Po Valley region of northern Italy.  The
licence contains the currently shut‑in 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 Podere Gallina licence held via Prospex's
two wholly owned subsidiaries, PXOG Marshall Ltd (17% of the Licence) and UOG
Italia Srl (20% of the Licence).

The Podere Gallina Licence holds independently verified 2P gross 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 was
prepared by CGG Services (UK) Limited in January 2019 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/3JASCc2
(https://bit.ly/3JASCc2) ]

 

 

 

Glossary:

scm                        Standard cubic metres

MMscm               Million standard cubic metres

Bcf                          Billion standard cubic
feet

MMscfd               million standard cubic feet per day

MWh                     Mega Watt hour

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGPUGPAUPWUMQ