TIDMPXEN
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 or contact the
following:
Mark Routh Prospex Energy Tel: +44 (0) 20 7236
PLC 1177
Ritchie Balmer Strand Hanson Tel: +44 (0) 20 7409
Rory Murphy Limited 3494
------------------ --------------------
Jerry Keen Fox-Davies Tel: +44 (0) 20 3884
Capital Limited 7447
------------------ --------------------
Andrew Monk (Corporate Broking) VSA Capital Tel: +44 (0) 20 3005
Andrew Raca/Alex Cabral (Corporate Limited 5000
Finance)
------------------ --------------------
Ana Ribeiro / Susie Geliher St Brides Partners Tel: +44 (0) 20 7236
Limited 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 GBP300,000 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 ]
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.
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
MSCNKQBBPBKDOOK
(END) Dow Jones Newswires
July 05, 2023 02:00 ET (06:00 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
