Prospex Energy PLC Full Environmental Approval for Selva Gas Field (4599U)
April 06 2021 - 01:00AM
UK Regulatory
TIDMPXEN
RNS Number : 4599U
Prospex Energy PLC
06 April 2021
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
Prospex Energy PLC ('Prospex' or the 'Company')
Full Environmental Approval for Selva Gas Field
Prospex Energy PLC, the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that it has
been advised by the operator, Po Valley Operations Limited ('PVO'),
that full environmental approval for the development of the Selva
Malvezzi Gas-Field ('Selva') in northern Italy has been received
from the Italian Government. Full environmental approval paves the
way for the grant of a full production licence from Italy's
Economic Development Ministry. Prospex holds a 17% interest in the
Podere Gallina licence which holds the Selva gas field.
Full Production Licence
The operator expects to submit the required documentation in
support of its application for a full production licence for Selva
during Q2 2021. This will include an application for an INTESA
(intergovernmental agreement) between the regional and national
governments, which is a standard development procedure for onshore
gas fields in Italy. A preliminary gas Production Concession
(80.68km(2)) was granted by the Italian Ministry for Economic
Development in early 2019.
The receipt of full environmental approval follows the approval
of the Environmental Impact Assessment ('EIA') of Selva and
subsequent sign-off by the Ministers of MITE (Ministry of
Ecological Transition) and MIC (Ministry of Culture). The approval
has been published on the official website.
Selva Development Plan
In tandem with the production licence application process,
development and preliminary work has now commenced to prepare the
field, which has gross gas reserves of 13.3bcf (2P), for production
in mid-2022. Under the first phase of the development plan, a fully
automated gas plant will be installed at the existing Selva/Podere
Maiar 1dir well site along with a one-kilometre long pipeline to
connect the well with the nearby Italian National Gas Grid. The
planned Selva development has a small footprint of less than half a
hectare.
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 mmscf/day) from successfully tested C1 and C2
production levels in the Medium-Upper Pliocene sands of the Porto
Garibaldi Formation.
Prospex non-executive Chairman, Bill Smith, said, "Gas
production at Selva promises to transform Prospex Energy's
financial profile and with this in mind the granting of full
environmental approval for the development of the field is a key
milestone for the Company. With a planned maximum production rate
of up to 150,000 cubic metres/day, Selva on its own is expected to
generate annualised revenues several times greater than our
historic annual corporate costs which, in turn, will enable us to
pursue additional low risk exploration and development
opportunities both at Podere Gallina and at our Spanish
projects.
"Next steps for Selva include the submission of the required
documentation for a production concession licence later this
quarter, as well as the commencement of preliminary development
work at the site. Environmental approval will also aid the
progression of discussions with potential non-equity funders for
our share of the development costs. Together with the recently
completed acquisition of the El Romeral Gas & Power Project in
Spain, tangible progress is being made to build a highly cash
generative business focused on European gas and power opportunities
and I look forward to providing further updates on our
progress."
This announcement contains inside information.
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Energy PLC Tel: +44 (0) 20 3948
1619
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
Duncan Vasey Peterhouse Corporate Finance Tel: +44 (0) 20 7469
0932
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236
Cosima Akerman 1177
Notes
Prospex Energy PLC is an AIM quoted investment company focussed
on high impact onshore and shallow offshore European gas and power
opportunities. The Company acquires undervalued projects and then
applies low cost re-evaluation techniques to identify and de-risk
prospects. Prospex currently holds a portfolio of three projects:
the Podere Gallina Permit in Italy where first gas at the Selva
field is targeted for 2021; the El Romeral gas and power project in
Spain which includes three producing wells that supply gas to a
100% project-owned 8.1MW power plant; and the large scale Tesorillo
gas project in southern Spain which has the potential to hold gross
un-risked Prospective Resources of 830 Bcf of gas (Best Estimate),
with upside in excess of 2 Tcf. The Company's strategy is to
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.
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
MSCFELLBFZLBBBZ
(END) Dow Jones Newswires
April 06, 2021 02:00 ET (06:00 GMT)
Prospex Oil And Gas (LSE:PXOG)
Historical Stock Chart
From Feb 2024 to Mar 2024
Prospex Oil And Gas (LSE:PXOG)
Historical Stock Chart
From Mar 2023 to Mar 2024