REG - Prospex Energy PLC - Start of gas production from Podere Maiar-1

Prospex EnergyAnnouncement

05/07/2023 07:00

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RNS Number : 9619E  Prospex Energy PLC  05 July 2023

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

 

5 July 2023

 

Prospex Energy PLC

('Prospex' or the 'Company')

 

Italy: Selva Field Development

Start of gas production from Podere Maiar-1 in Italy

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to announce the start of gas
production from the Podere Maiar-1 ("PM-1") gas facility at the Selva field in
the Po Valley region of northern Italy.  First gas was achieved following the
completion of operational and safety inspections with successful sign off from
UNMIG and the Fire Department and subsequent go-ahead from the Ministry last
week, solidifying its authorisation for gas production at PM-1.

 

Construction and grid connection of PM-1 to the SNAM grid in Italy was
announced on the 16 May 2023, with all activities completed on schedule and
within 3% of budget.

 

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 a 63% working interest, while Prospex has the
remaining 37% working interest.

 

Highlights

·    Podere Maiar-1 commenced gas production in Italy, delivering first
gas on 4 July 2023

·    First gas will provide the Company with its maiden revenue from the
Selva Malvezzi Production Concession in Italy

·   PM-1 will provide gas directly to the domestic Italian market under an
18-month supply agreement with BP Gas Marketing announced on 14 February 2023

·    Further upside potential at the Selva Malvezzi Production Concession
(Figure 1), as Po Valley Energy, the Operator, intends to advance other
projects within the Concession.

 

Mark Routh, Prospex's CEO, commented:

"I am absolutely thrilled to be announcing the start of first gas from the
Podere Maiar-1 well in the Selva Field, a pivotal milestone in our company's
development and a credit to the work of our partners at Po Valley Energy and
their team on the ground, Po Valley Operations, who have made today's
announcement possible.

 

"I would also like to thank our shareholders, who have supported us as we
transitioned to become a gas producer in Italy with guaranteed revenues from
our 37% interest in the field, on the back of the 18-month supply agreement
with BP Gas Marketing.  We are optimistic additional gas producing wells will
be developed within this Concession which hosts several lookalike prospective
wells and we look forward to updating the market on our progress in this
regard."

 

"This is a key step in the Company's strategy to become a diversified energy
producer with multiple producing assets principally in lower risk, onshore
European markets with ready access to infrastructure".

 

As part of the gas production process, Po Valley Energy will actively monitor
production parameters in order to determine the optimal flow rate and ensure
sustainable production levels from the Podere Maiar-1 well.  By settling on a
sustainable flow rate, it aims to maximise the production potential from the
Selva Malvezzi concession.  The Company will update shareholders on the
production rates in the coming months.

 

 

 

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
 Jerry Keen                                    Fox-Davies Capital Limited    Tel: +44 (0) 20 3884 7447
 Andrew Monk (Corporate Broking)               VSA Capital Limited           Tel: +44 (0) 20 3005 5000

Andrew Raca/Alex Cabral (Corporate Finance)
 Ana Ribeiro / Susie Geliher                   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:

 

 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 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).  Prospex estimates that the net monthly revenue from the 37%
working interest in Selva at current TTF gas prices will exceed £300,000 net
of tax and royalties.

The Podere Gallina Licence 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 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/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.

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