TIDMPXEN
RNS Number : 2390H
Prospex Energy PLC
23 November 2022
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
23 November 2022
Prospex Energy PLC
('Prospex' or the 'Company')
Italy: Selva Field Development Update
Start of Gas Plant construction works and pipeline installation
at Selva
Prospex Energy PLC (AIM: PXEN), the AIM quoted investment
company focused on European gas and power projects, is pleased to
provide an update on the development activity on the Podere Gallina
Licence (the 'Licence') located onshore in the Po Valley region of
northern Italy, in which lies the Selva gas field within the Selva
Malvezzi Production Concession ('Selva'). Po Valley Energy Limited
(ASX:PVE) ('Po Valley' or the 'Operator') released an update on the
ASX overnight on 23 November 2022. Prospex holds a 37% working
interest in the Podere Gallina licence with the Operator holding
the remaining 63%.
Highlights
-- Final approval to commence development activity received on 21 November 2022
-- Works to prepare the tie-in to the SNAM gas grid network commenced on 19 November 2021
-- Gas plant construction work and pipeline installation work is to commence 28 November 2022
-- Podere Maiar remains on track for first gas in early Q2 2023
-- Final stage of production concession application for Prospex submitted
-- Po Valley, the operator, in dialogue with off-take partners
for the sale of gas from Podere Maiar
Mark Routh, Prospex's CEO, commented:
"We are extremely pleased that Po Valley has confirmed that
final permissions have been granted to start the development works
on site and that Podere Maiar remains on schedule and on budget to
achieve first gas early in the second quarter of 2023. Initial
conversations with gas off-take partners for the sale of gas have
commenced, which we have decided to sell jointly with the Operator
Po Valley under a joint marketing agreement, which we believe will
optimise the value of our gas sales and provide better value for
our shareholders.
"In addition, the submission of our final application to the
Ministry of the Environment and Energy Security to be approved as a
gas producer took place on 21 November 2022. We believe that next
year will be a transformational year for Prospex as we become a
producer of gas in Italy as well as in Spain and very much look
forward to keeping shareholders updated on our progress."
Gas Plant Construction and Pipeline Installation
On 19 November 2022, the engineering work commenced to connect
the suspended well at Selva to the SNAM S.p.A. (BIT:SRG), the
Italian energy infrastructure company's grid tie-in connection
point.
On 21 November 2022 Po Valley confirmed that construction works
at the Selva well site and the 4--inch pipeline installation will
commence on 28 November 20222. The project is on schedule for first
gas from Selva , from the Podere Maiar-1 well, early in the second
quarter of 2023.
Production Concession Application submitted for Prospex
In addition, on 21 November 2022 formal applications were
submitted to the Ministry of the Environment and Energy Security
for Prospex's two wholly owned subsidiaries which own the working
interest in the Podere Gallina Licence, PXOG Marshall Ltd (17% of
the Licence) and UOG Italia Srl (20% of the Licence) to be assigned
to the Selva Malvezzi Production Concession which was approved by
the Ministry in July 2022. This is the final step of the approvals
process for Prospex to be officially recognised as a gas producer
in Italy from the concession operated by Po Valley.
Gas Sales Agreements
Po Valley has confirmed that it is in dialogue with several
counterparties to offtake and sell the gas from Selva on behalf of
the Joint Venture. Bids to take delivery of our gas at the SNAM
connection point to the national grid which is less than 1 km from
the Podere Maiar-1 (Selva) well site are being evaluated and a
joint marketing agreement will be drawn up to facilitate joint
sales.
New name for the Italian Regulator
The new government in Italy has renamed the Ministry which is
responsible for approvals and permitting of activities carried out
by energy companies to: The Ministry of the Environment and Energy
Security, previously the Ministry of Ecological Transition. The new
Minister of the Environment and Energy Security is Gilberto
Pichetto Fratin. The new name of the Ministry (which is subject to
a final decree) signals a change in emphasis and attitude by the
Italian authorities towards natural gas, which has been
acknowledged by the EU as the transition fuel to move Europe
towards the decarbonisation of energy supply. This is a positive
move as Europe and Italy in particular address the energy
shortfalls being experienced because of world events over the past
year.
* * 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 Selva:
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.
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 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 Q4-2022 is available on
the Company's website at https://www.prospex.energy/home/
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 or visit 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.
END
UPDLLLFLLFLLFBV
(END) Dow Jones Newswires
November 23, 2022 02:00 ET (07:00 GMT)
Prospex Energy (AQSE:PXEN.GB)
Historical Stock Chart
From Nov 2024 to Dec 2024
Prospex Energy (AQSE:PXEN.GB)
Historical Stock Chart
From Dec 2023 to Dec 2024
