TIDMPXEN
RNS Number : 8971A
Prospex Energy PLC
30 May 2023
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
30 May 2023
Prospex Energy PLC
('Prospex' or the 'Company')
Italy: Selva Field Development Update
Successful Recovery of EUR757,000 Performance Bond Funds
Prospex Energy PLC (AIM: PXEN), the AIM quoted investment
company focused on European gas and power projects, is pleased to
announce that on behalf of the Joint Venture, Po Valley Energy
Limited has recovered the EUR757,000 performance bond funds
deposited with SNAM, the Italian national Transmission System
Operator.
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 63% ownership
interest and Prospex has the remaining 37% working interest in the
Joint Venture.
Highlights
-- PVO has successfully recovered the EUR757,000 performance
bond (EUR280,090 net to PXEN) previously deposited with the Italian
national Transmission System Operator SNAM
-- The return of the bond follows the completion of the SNAM
pipeline tie in connection, Gas Sales Agreement and transportation
arrangements
-- First gas supply from the Podere Maiar - 1 well in the Selva
field is contingent upon final Ministry approval after final
operation and safety inspection of the completed gas treatment
plant
On Monday 29 May 2023, Po Valley Energy Limited (ASX: PVE)
announced that the process to recover the performance bond funds
deposited with SNAM had been finalised. The amount reimbursed from
SNAM is EUR757,000 with EUR280,090 net to PXEN. This follows the
completion of the pipeline tie in connection to the newly built
Podere Maiar - 1 (PM-1) gas treatment facility in the Selva
Malvezzi Production Concession, located in the Emilia Romagna
region (Po River Valley area in the north of Italy).
The return of the bond deposited with SNAM was conditional on
completion of the SNAM grid connection and the Gas Sales Agreement,
announced on 13 February 2023.
Initial production of PM-1 gas is contingent on Ministry final
approval after the sign-off of the final operation and safety
inspection. The final inspection has been delayed due to severe
flooding throughout the Emilia Romagna region. Po Valley Energy has
been informed that the inspection will take place as soon as the
Fire Department has attended to urgent priorities. The gas
treatment facility and preparatory activities for first gas have
not been affected by the flooding.
Mark Routh, Prospex's CEO, commented:
"The team at Po Valley continues to deliver on behalf of the
Joint Venture and the new gas plant facility and grid connection
has been approved by the Italian national Transmission System
Operator. The return of the SNAM Bond is an expected but welcome
boost.
"The anticipated flow of gas from Selva by the end of May has
been delayed on account of the emergency situation in the Emilia
Romagna region of the Po Valley, where the emergency services are
fully focussed on dealing with the catastrophic flooding in the
area. Fortunately, the new plant and the well site has not been
affected by the flooding.
"The delay of the final operation and safety inspection due to
the flooding is entirely beyond the control of the team in Italy.
The Operator has been assured that the necessary inspections by the
fire department will take place as soon as resources become
available."
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
PLC 7236 1177
Ritchie Balmer Strand Hanson Tel: +44 (0) 20 7409
Rory Murphy Limited 3494
Andrew Monk (Corporate Broking) VSA Capital Limited Tel: +44 (0) 20 3005
Andrew Raca/Alex Cabral (Corporate 5000
Finance)
Colin Rowbury Novum Securities Tel: +44 (0) 20 7399
Jon Belliss Limited 9427
Susie Geliher St Brides Partners Tel: +44 (0) 20 7236
Ana Ribeiro 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:
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 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
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.
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END
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