REG - Prospex Energy PLC - Italy: Selva Malvezzi Production Concession

Prospex EnergyAnnouncement

31/01/2025 07:00

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RNS Number : 3682V  Prospex Energy PLC  31 January 2025

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

 

31 January 2025

 

Prospex Energy plc

("Prospex" or the "Company")

 

Italy: Selva Malvezzi Production Concession

 

Q4 2024 Activity Report

Gross Production and Revenues Increase by over 90% YoY at PM-1

 

Prospex Energy plc (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to provide an update from the
Selva Malvezzi production concession in Italy following the publication by Po
Valley Energy Limited ("Po Valley Energy") (ASX: PVE) of its Q4‑2024
activity report.  Po Valley Operations Pty Limited ("PVO"), a wholly owned
subsidiary of PVE is the operator of the Selva Malvezzi production concession,
which has a 63% working interest, while Prospex has the remaining 37% working
interest.

 

Gas production and revenues from PM-1 gas facility in the Selva Malvezzi
Production Concession

 

 PM-1 Production Data                       Mar 2024 Quarter  Jun 2024 Quarter  Sept 2024 Quarter  Dec 2024 Quarter
                                            Q1-2024           Q2-2024           Q3-2024            Q4-2024
 Average gross daily production rate (scm)  69,976            74,904            76,910             79,596
 Quarterly net (37%) production (MMscm)     2.363             2.529             2.596              2.710
 Weighted average price (per scm)           € 0.30            € 0.34            € 0.39             € 0.46
 37% Revenue net to Prospex ('000)          € 705             € 855             € 1,020            € 1,250

 

Highlights

·    Steady gas production in line with expectations from the Podere
Maiar-1 well at Selva ("PM‑1") for the quarter averaging approximately
80,000 scm/d.

·    Robust gas prices with the average weighted gas sales price for the
quarter at €0.46/scm (~€44/MWh) an 18% increase on the previous quarter
(€0.39/scm) due to strong market conditions.

·    Gross quarterly production of 7.323MMscm of gas (Q4‑2023:
4.180MMscm), with 2.71MMscm net to Prospex (Q4‑2023: 1.547MMscm).

·    Gross revenue for the quarter of €3.38 million (Q4‑2023: €1.77
million), with €1.25 million net to Prospex (Q4‑2023: €656,122), a 23%
increase on the previous quarter Q3‑2024 (€2.76 million with €1,020 net
to Prospex) and 91% increase on Q4‑2023.

·    PM-1 continues to sell the gas to BP Gas Marketing.

·    Drilling applications for four new wells in the Selva Malvezzi
production concession were filed in Q3-2024 with the technical office of the
Ministry of Environment and Energy Security.

·    No significant disruptions to production and no stoppages for any
slick line operations in Q4‑2024, with the well continuing to operate in
line with expectations.  The next slick line operation is planned for later
in Q1‑2025.

·    Environmental Impact Studies for the four new wells and related
development within the Selva Malvezzi Production Concession submitted with the
relevant department at the Ministry of Environment and Energy Security in
December 2024.

·    Preparation for the 3D geophysical survey acquisition on the Selva
Malvezzi Production Concession was significantly progressed during Q4‑2024.
 All environmental approvals have been received and planning and permitting
well advanced.  The geophysical campaign will commence once final ministerial
approval is received.

 

Mark Routh, Prospex's CEO, commented:

"I am very pleased to report that Po Valley Energy, the operator of our Selva
Malvezzi Production Concession continues to maintain, safe, reliable and
efficient operations, ensuring consistent and increasing income.  Gas prices
in Europe remain strong with revenues accumulating well which will facilitate
the funding of future development and drilling campaigns.

 

"With significant progress on permit applications to drill four further wells
on the concession, the planned 3D seismic survey about to receive its final
approval and with acquisition imminent, the Company's investment in the Selva
Malvezzi production concession continues to provide high value to
shareholders."

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

* * ENDS * *

 

For further information, please contact:

 

 Mark Routh                        Prospex Energy plc            Tel: +44 (0) 20 7236 1177
 Ritchie Balmer                    Strand Hanson Limited         Tel: +44 (0) 20 7409 3494

Rory Murphy

David Asquith                    (Nominated Adviser)
 Andrew Monk (Corporate Broking)   VSA Capital Limited           Tel: +44 (0) 20 3005 5000

Andrew Raca (Corporate Finance)
 Ana Ribeiro / Charlotte Page      St Brides Partners Limited    Tel: +44 (0) 20 7236 1177

 

Further information on the Company can be found on its website at
www.prospex.energy (http://www.prospex.energy) .

 

Notes

Prospex Energy plc is an AIM quoted investment company focused 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 Selva Malvezzi Production Concession is in the Po Valley region of
northern Italy.  The concession contains the Selva gas-field, which produces
from the Podere Maiar-1 well, 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 Production Concession held via Prospex's two wholly owned subsidiaries,
PXOG Marshall Ltd (17% of the Licence) and UOG Italia Srl (20% of the
Licence).

 

The Selva Malvezzi Production Concession 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 )

The operator has decided to re-name the discoveries and prospects on the
concession.  North Selva is to be renamed Casale Guida 1d, South Selva is to
be renamed Ronchi 1d, East Selva is to be renamed Selva Malvezzi 1d and
Riccardina is to be renamed Bagnarola 1d.

 

The drilling programmes for the four new drilling projects at Casale Guida 1d
(North Selva), Ronchi 1d (South Selva), Selva Malvezzi 1d (East Selva) and
Bagnarola 1d (Riccardina) were filed for drilling authorisation to UNMIG
department of the Italian Ministry of Environment and Energy Security (MASE)
in September 2024.  The Environmental Impact Study for drilling, development
and production of the four wells was submitted in December 2024.

 

An independent Competent Person's Report of the Podere Gallina Licence which
was converted into the Selva Malvezzi Production Concession at first gas in
July 2023, 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

TTF                     The 'Title Transfer Facility' - a virtual
trading point for natural gas in the Netherlands.

 

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.

 Appendix

 

Figure 1: Selva Malvezzi Production Concession

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