Italy: Selva Field Development

Prospex Energy PLC

31 January 2024

 

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

31 January 2024

Prospex Energy PLC

("Prospex" or the "Company")

Italy: Selva Malvezzi Production Concession

Quarterly Activities Report for the Period Ended 31 December 2023

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to provide an activity report from the Selva Malvezzi production concession in Italy following the publication of the quarterly report by Po Valley Energy Limited ("Po Valley Energy") (ASX: PVE).  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.

Highlights

·    The Podere Maiar-1 well at Selva ("PM-1") has performed very consistently during the confirmatory program carried out in Q4 2023.

·    Production levels were tested at various rates from ~42,000 scm/d to ~62,000 scm/day during the quarter.

·    Following favourable final test results in January, production has been set to ~78,000-80,000 scm/d post-quarter end.

·    PM-1 is supplying the gas to BP Gas Marketing under an 18-month supply agreement.

·    Gas prices remain volatile with the current TTF spot price of ~€0.325/scm which is ~19% lower than the €0.40/scm weighted average price received during the quarter.

·    Quarterly production on a 100% basis was 4,180,015 scm of gas (1,546,605 scm net to Prospex) and revenue for the quarter ending 31 December 2023 on a 100% basis was €1,773,302 (€656,122 net to Prospex).

·    The operator is progressing with the other projects in the Selva Malvezzi production including very positive interactions with local landowners and progressing the permitting process with the regulatory authorities.  Following a successful project of reprocessing the existing 2D seismic lines in the production concession, the Joint Venture is now evaluating the potential for a new seismic acquisition programme over the licence area in order to optimise the drilling programmes of the identified contingent resources at Selva North, Selva South and the East Selva and Riccardina prospects.

Mark Routh, Prospex's CEO, commented:

"The operator of our Selva Malvezzi production concession, Po Valley Energy, continues with the sound reservoir management of the asset.  The ongoing monitoring and maintenance of the production facilities and the well performance ensures it not only delivers the optimum gas production rates but moreover guarantees safe and reliable operations.

"I look forward to updating shareholders as we progress the necessary activities to secure the development drilling programmes for the contingent resources at Selva North and Selva South and for the target of converting prospective resources at East Selva and Riccardina into proved, developed and producing reserves."

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: [phone]
Ritchie Balmer Rory Murphy	Strand Hanson Limited	Tel: [phone]
Lional Therond / Daniel Fox-Davies	Fox-Davies Capital Limited	Tel: [phone]
Andrew Monk (Corporate Broking) Andrew Raca / Alex Cabral (Corporate Finance)	VSA Capital Limited	Tel: [phone]
Ana Ribeiro / Susie Geliher	St Brides Partners Limited	Tel: [phone]

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 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).

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/44VF02A

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.

 

END