REG - Prospex Energy PLC - Signing Gas Sales Agreement with Hera Group

Prospex EnergyAnnouncement

21/08/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250821:nRSU1284Wa&default-theme=true

RNS Number : 1284W  Prospex Energy PLC  21 August 2025

 

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

 

21 August 2025

Prospex Energy plc

("Prospex" or the "Company")

 

Prospex and Po Valley sign Gas Sales Agreement with Hera Group

 

Prospex Energy plc (AIM: PXEN), the AIM quoted investing company focused on
European gas and power projects, is pleased to announce that Po Valley
Operations Pty Limited (PVO), a wholly owned subsidiary of Po Valley Energy
Limited (ASX: PVE) and operator of the Selva Malvezzi production concession,
together with its JV partners, PXOG Marshall Limited (PXOG) and UOG Italia Srl
(UOG), have signed a new gas sales agreement (GSA) with Hera Trading S.r.l.
(Hera Group).

 

PVO is the operator of the Selva Malvezzi production concession under a Joint
Operating Agreement (JOA) and holds a 63% interest with Prospex's subsidiaries
holding 17% through PXOG Marshall Limited (PXOG) and 20% through UOG Italia
Srl (UOG).

 

Highlights

·    Selva Malvezzi Joint Venture signs a new GSA with Hera Trading to
supply gas from its Podere Maiar-1d well facility in Italy

·    12-month contract commencing 1 October 2025 to supply approximately
27.963 million standard cubic metres of gas, with the option to extend

·    Gas supply price will be linked to the Italian Gas Index (IG INDEX
GME)

·    Podere Maiar-1d has delivered ≈54.4 million standard cubic metres
of gas from the C2 level in the well to date since first gas on 4 July 2023

 

Hera Trading, a group entity headed by Hera S.p.A, with operational
headquarters in the Bologna province (Emilia Romagna region), offers the Joint
Venture the opportunity to collaborate with a local business and strengthen
engagement with the local community.  Hera is a major Italian multi-utility
company listed on the FTSE MIB, Borsa Italiana's main Index, which includes
the 40 largest stocks by capitalisation, liquidity and trading volume.

 

The GSA with Hera will commence on 1 October 2025 for gas production from the
Podere Maiar facility (PM-1d well) in the Selva Malvezzi production
concession, replacing the current GSA with BP Gas Marketing which expires on 1
October 2025.  The GSA was agreed following a competitive tender process,
with local player Hera Trading emerging as the successful bidder.  The
operator Po Valley expects the outcome to be strongly supported by local
stakeholders.

 

The Selva Malvezzi Joint Venture has completed nearly 2½ successful years
with partner BP Gas Marketing from first gas flow in July 2023, to date
delivering 54.4 million standard cubic metres of gas from PM-1d.  The
agreement with BP Gas Marketing Ltd has been a valued and effective
partnership.  BP's professionalism and support have contributed to the Joint
Venture's success.  Po Valley and Prospex thank BP Gas Marketing for its
support and collaboration as the agreement concludes on 1 October 2025.

 

Mark Routh, Prospex's CEO, commented:

"We are pleased that Po Valley has secured a new gas sales agreement with Hera
Group, a respected energy company with operational headquarters in the Bologna
area.  This is a significant engagement for both Po Valley and Prospex,
strengthening the Joint Venture's relationship with the region and
demonstrating its commitment to supply locally sourced energy to the
community.  The agreement with Hera will replace the current GSA with BP Gas
Marketing Ltd, which expires on 1 October 2025.

 

"The publicly quoted Italian Gas Index 'IG Index GME' gas price trades at a
premium to the Dutch TTF gas price, so we expect the Selva Malvezzi asset will
continue to achieve a premium for its gas sales."

 

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.

 

* * 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

 

 

Key terms of the GSA include:

 

 Parties                                                PVO, PXOG, UOG (JV Partners) and HERA
 Start date                                             1 October 2025
 End date                                               1 October 2026

 Extension of contract                                  No automatic right to extend, parties to commence extension discussions at
                                                        least 30 days before 30 September 2026

 Termination rights                                     Termination conditions standard for a contract of this nature including gas
                                                        quality and delivery specifications and payment

 SNAM delivery point                                    Budrio 50202301

 Gas supply volumes (estimate) - standard cubic metres  27,963,000 standard cubic metres for the thermal year ending 1 October 2026

                                                      (12 months)

 GSA gas pricing                                        Linked to PSV Day-Ahead from Italian Gas Index (IG INDEX GME)

                                                        "IG Index GME" is the reference index of the Italian Natural Gas Market. It
                                                        is calculated by GME for each gas day as the arithmetic average of the prices
                                                        of trades concluded in the 17:15-17:30 time bracket (including endpoints) in
                                                        the continuous-trading Day-Ahead Gas Market (MGP-GAS) and in respect of
                                                        Day-Ahead and WE products.

                                                        Information on the "Methodology for calculating the Italian Gas Index IGI"
                                                        published by the GME (Gestore Mercati Energetici) and is publicly available.

 PVO supply volume nominations                          PVO to provide provisional nominations monthly, weekly and daily

                                                        Actual and binding nominations required by 5pm (Rome time) on any day

                                                        Nomination tolerance of +/- 10%

 GSA payment terms                                      GSA includes detailed invoicing process for gas sales and SNAM transport
                                                        costs.  Settlement and payment process completes 20 days after month end.

 Contract management                                    PVO as operator will handle exclusively the contractual management relating to
                                                        appointments, nominations, calculation of transportation costs, price and
                                                        revenue calculations.

 

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  AGRPKKBNBBKDAFB