TIDMPXEN
RNS Number : 2277U
Prospex Energy PLC
29 July 2022
PROSPEX Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
29 July 2022
Prospex Energy PLC
('Prospex' or the 'Company')
Production Concession Granted for the Selva Field in Italy
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 (ASX:PVE) ('Po Valley' or
the 'Operator') has received approval for the production concession
at the Podere Maiar gas field located in the Po Valley onshore in
northern Italy, which lies within the Selva Malvezzi production
concession ('Selva'). Prospex holds a 37% working interest in the
Podere Maiar licence with the Operator holding the remaining
63%.
Highlights
-- Production Concession at Selva fully approved by Italy's Ministry of Ecological Transition
-- On the assumption that the joint venture parties meet the
development costs and secure the necessary contractors to undertake
the development work, first gas is anticipated in H1 of 2023
-- Contracts can now be awarded and first payments made to the
contractors for the construction of the automated gas plant
facilities, the installation of a 1,000 metre four-inch pipeline
and the connection to the national gas grid network operated by
SNAM
-- Prospex will now pay its 37% share of the EUR757,000 SNAM
Bond (EUR280,090 net to Prospex) necessary to procure the
connection to the national gas grid
Mark Routh, Prospex's CEO, commented:
"We are extremely pleased to have received the final approval of
the Production Concession from the Italian regulatory authority,
the Ministry of Ecological Transition. This allows work to commence
immediately to connect the suspended Podere Maiar-1 well to the
adjacent National Gas Grid operated by SNAM. I acknowledge the hard
work and advanced planning by the Operator's team in Italy whose
perseverance and professionalism has led to securing this major
milestone for both Po Valley and Prospex.
"The development of this indigenous gas field is good for local
jobs, boosts the economy of the region and although relatively
small, this gas production will go some way towards alleviating the
energy and gas supply shortfalls being experienced in Italy and
indeed the whole of Europe."
Further Information
Po Valley was awarded the Selva Malvezzi preliminary gas
Production Concession (80.68km(2) ) in 2019 and received the final
Environmental Impact Assessment ('EIA') decree issued by the
Ministry on 29 March 2021. The Emilia Romagna Regional Council
approved INTESA (local government production agreement) for the
Podere Maiar gas field at Selva on 5 June 2022. Po Valley will now
apply to the Ministry for the formal transfer of 37% to Prospex of
the quotas in Po Valley's Selva Malvezzi concession. This legal
transfer can only happen after production concession approval and
is essentially a formality. It will not delay field development
activity undertaken by the Operator and its contractors.
The Podere Maiar gas field, within the Selva Malvezzi
concession, is in a defined "suitable area" under the Plan of Areas
(' PiTESAI ').
Based on dynamic reservoir studies, the field development is
designed to produce at a maximum rate of up to 150,000 cubic
metres/day (5.3 million standard cubic feet per day ('MMscfd'))
from successfully tested C1 and C2 production levels in the Medium-
Upper Pliocene sands of the Porto Garibaldi Formation. (Refer to Po
Valley (ASX:PVE) ASX release dated 29 May 2018.)
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 or contact the
following:
Mark Routh Prospex Energy PLC Tel: +44 (0) 20
7236 1177
Ritchie Balmer Strand Hanson Limited Tel: +44 (0) 20
Rory Murphy 7409 3494
Andrew Monk (Corporate Broking) VSA Capital Limited Tel: +44 (0) 20
Andrew Raca/Alex Cabral (Corporate 3005 5000
Finance)
Colin Rowbury Novum Securities Tel: +44 (0) 20
Jon Belliss Limited 7399 9427
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ana Ribeiro Limited 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 El Romeral and Tarba
The El Romeral gas and power project in Spain, with gas
production wells supplying gas to an 8.1MW power plant near Carmona
in Southern Spain is owned and operated by Tarba. It is currently
operating at about 30% of its full capacity whilst Tarba waits on
permits to drill further infill wells on the concessions to
increase production. Prospex owns a 49.9% working interest in the
El Romeral project via Tarba. The remaining 50.1% working interest
is owned by Warrego Energy Limited (ASX:WGO). Tarba sells
electricity generated from the plant on the spot market in Spain.
The El Romeral licences comprise three contiguous production
concessions.
About Selva:
The Podere Gallina Licence is in the Po Valley region of Italy.
The licence contains the currently shut--in Selva gas-field as well
as exciting exploration opportunities. The Podere Maiar-1 well 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.
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 91.5 Bcf of gross Best Estimate Prospective Resources (33.9
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.
The CPR also attributed Best Estimate gross prospective
(un-risked) gas resources of 1,493 MMscm (52.7 Bcf) on the Podere
Gallina Licence in three separate structures.
References:
[1] Source : "Competent Person's Report Podere Gallina Licence,
Italy" prepared by CGG Services (UK) Limited in January 2019
https://bit.ly/3nZNfYf ].
Glossary:
scm Standard cubic metres
MMscm Million standard cubic metres
Bcf Billion standard cubic feet
MMscfd million standard cubic feet per day
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.
The updated Corporate Presentation for Q3-2022 is available on
the Company's website at https://www.prospex.energy/home/
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END
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