REG - Prospex Energy PLC - Successful ramp-up and commissioning of PM-1

Prospex EnergyAnnouncement

07/08/2023 07:00

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RNS Number : 4115I  Prospex Energy PLC  07 August 2023

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

 

7 August 2023

 

Prospex Energy PLC

('Prospex' or the 'Company')

 

Italy: Selva Field Development

 

Successful ramp-up and commissioning of the Podere Maiar-1 gas facility in Po
Valley

 

1,800,000 scm gas produced during ramp-up and sold to BP Gas Marketing

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that Po Valley Energy
Limited ("Po Valley Energy") (ASX: PVE) has successfully completed the ramp-up
and commissioning process at the Podere Maiar-1 ("PM-1") gas facility of the
Selva Field.

 

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

 

Highlights

·    The four-week ramp-up and commissioning programme at the PM-1
production facility was completed during the week ending 4 August 2023

 

·    A seamless ramp-up and commissioning process has concluded with slick
line rig removal of data gathering memory gauges from the lower C2 production
zone as part of a three-day scheduled shut down

 

·    Production at PM-1 has recommenced with forecast daily production
levels of 72,000 standard cubic metres per day (scm/d) until all data analysis
is complete

 

·    Gas produced during the ramp-up period is estimated to be
approximately 1,800,000 scm with 100% of this gas sold to BP Gas Marketing
under the 18-month supply agreement

 

·    Detailed analysis of well data is currently underway with results
expected within three weeks

 

·    Further upside potential at the Selva Malvezzi Production Concession
(Figure 3), as Po Valley Energy, the operator, intends to advance other
projects within the concession.

 

Mark Routh, Prospex's CEO, commented:

"I am very pleased that Po Valley Energy has completed the ramp-up and
commissioning process at the PM-1 gas facility of the Selva field.  The final
transition to ongoing production at PM-1 is underway which marks a major
milestone for both Po Valley and Prospex.  The ongoing production from PM-1
is an outstanding platform from which the Joint Venture can actively pursue
the exploration and development of nearby lookalike wells.

 

"I would also like to take the opportunity to congratulate Po Valley Energy
and their team on the ground, for the highly effective management of the
start-up phase of the PM-1 gas facility during July.  The necessary and
prudent data acquisition programme of downhole pressures and temperatures has
been completed and will be analysed in order to develop the optimum ongoing
production strategy.

 

"We have now delivered 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.  We
are proud to be supporting the European Energy sector with producing assets in
both Italy and Spain and look forward to updating shareholders on our
continued progress."

 

PVO announced early this morning that the ramp-up and commissioning phase of
its PM-1 gas facility in the Selva Malvezzi Production Concession, located in
the Po Valley plains of northern Italy, is complete.

 

The ramp-up and commissioning process progressed in a seamless manner and
concluded with a scheduled three-day shut down and removal of memory gauges
from the lower C2 production zone.  A slick line rig attended site during the
last day of the shut-down period to complete this successful work programme
with memory gauge removal and acquisition of pressure / temperature gradient
data after which production at the PM-1 facility recommenced.

 

Analysis and understanding of data from the memory gauges removed from the
well and pressure / temperature gradient are important data points for long
term reservoir behaviour and determining associated production levels.  This
data is being analysed in order to determine optimal and long-term production
levels.  It is expected that this analysis will take approximately three
weeks.  In the interim period, stable production at PM-1 will continue at
approximately 72,000 scm/d.

 

Gas produced during the ramp-up period is estimated to be 1,800,000 scm,
however, this amount is subject to final reconciliation with commercial
stakeholders via standard commercial processes.  PM-1 sold 100% of this gas
to BP Gas Marketing under the 18-month gas supply agreement (announced on 14
February 2023).

 

The ramp-up and commissioning at PM-1 incorporated steady increases in volume
starting at ~35,000 scm/d moving to ~50,000 scm/d.  Thereafter, a step up in
volume of 10,000 scm/d occurred on a weekly basis with production in the final
week at ~80,000 scm/d prior to the scheduled three-day shut down.

 

With gas production commencing 4 July 2023 and ramp-up and commissioning
concluding 4 August 2023, PVE and Prospex can look forward to initial gas
production cashflows before the end of August 2023.

 

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:

Figure 1 - Podere Maiar - 1 Well Site

 

Figure 2 - Nitrogen and compressed air tanks

 

Figure 3: Selva Malvezzi Production Concession

 

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).

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/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)

 

 

 

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

 

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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