TIDMPXEN
RNS Number : 4115I
Prospex Energy PLC
07 August 2023
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
7 August 2023
Prospex Energy PLC
('Prospex' or the 'Company')
Italy: Selva Field Development
Successful ramp-up and commissioning of the Podere Maiar-1 gas
facility in Po Valley
1,800,000 scm gas produced during ramp-up and sold to BP Gas
Marketing
Prospex Energy PLC (AIM: PXEN), the AIM quoted investment
company focused on European gas and power projects, is pleased to
announce that Po Valley Energy Limited ("Po Valley Energy") (ASX:
PVE) has successfully completed the ramp-up and commissioning
process at the Podere Maiar-1 ("PM-1") gas facility of the Selva
Field.
Po Valley Operations Pty Limited ("PVO"), a wholly owned
subsidiary of Po Valley Energy, is the Operator of the Selva
Malvezzi production concession with a 63% working interest, while
Prospex has the remaining 37% working interest.
Highlights
-- The four-week ramp-up and commissioning programme at the PM-1
production facility was completed during the week ending 4 August
2023
-- A seamless ramp-up and commissioning process has concluded
with slick line rig removal of data gathering memory gauges from
the lower C2 production zone as part of a three-day scheduled shut
down
-- Production at PM-1 has recommenced with forecast daily
production levels of 72,000 standard cubic metres per day (scm/d)
until all data analysis is complete
-- Gas produced during the ramp-up period is estimated to be
approximately 1,800,000 scm with 100% of this gas sold to BP Gas
Marketing under the 18-month supply agreement
-- Detailed analysis of well data is currently underway with results expected within three weeks
-- Further upside potential at the Selva Malvezzi Production
Concession (Figure 3), as Po Valley Energy, the operator, intends
to advance other projects within the concession.
Mark Routh, Prospex's CEO, commented:
"I am very pleased that Po Valley Energy has completed the
ramp-up and commissioning process at the PM-1 gas facility of the
Selva field. The final transition to ongoing production at PM-1 is
underway which marks a major milestone for both Po Valley and
Prospex. The ongoing production from PM-1 is an outstanding
platform from which the Joint Venture can actively pursue the
exploration and development of nearby lookalike wells.
"I would also like to take the opportunity to congratulate Po
Valley Energy and their team on the ground, for the highly
effective management of the start-up phase of the PM-1 gas facility
during July. The necessary and prudent data acquisition programme
of downhole pressures and temperatures has been completed and will
be analysed in order to develop the optimum ongoing production
strategy.
"We have now delivered 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. We are proud to be supporting the
European Energy sector with producing assets in both Italy and
Spain and look forward to updating shareholders on our continued
progress."
PVO announced early this morning that the ramp-up and
commissioning phase of its PM-1 gas facility in the Selva Malvezzi
Production Concession, located in the Po Valley plains of northern
Italy, is complete.
The ramp-up and commissioning process progressed in a seamless
manner and concluded with a scheduled three-day shut down and
removal of memory gauges from the lower C2 production zone. A slick
line rig attended site during the last day of the shut-down period
to complete this successful work programme with memory gauge
removal and acquisition of pressure / temperature gradient data
after which production at the PM-1 facility recommenced.
Analysis and understanding of data from the memory gauges
removed from the well and pressure / temperature gradient are
important data points for long term reservoir behaviour and
determining associated production levels. This data is being
analysed in order to determine optimal and long-term production
levels. It is expected that this analysis will take approximately
three weeks. In the interim period, stable production at PM-1 will
continue at approximately 72,000 scm/d.
Gas produced during the ramp-up period is estimated to be
1,800,000 scm, however, this amount is subject to final
reconciliation with commercial stakeholders via standard commercial
processes. PM-1 sold 100% of this gas to BP Gas Marketing under the
18-month gas supply agreement (announced on 14 February 2023).
The ramp-up and commissioning at PM-1 incorporated steady
increases in volume starting at 35,000 scm/d moving to 50,000
scm/d. Thereafter, a step up in volume of 10,000 scm/d occurred on
a weekly basis with production in the final week at 80,000 scm/d
prior to the scheduled three-day shut down.
With gas production commencing 4 July 2023 and ramp-up and
commissioning concluding 4 August 2023, PVE and Prospex can look
forward to initial gas production cashflows before the end of
August 2023.
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.
* *S * *
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
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Jerry Keen Fox-Davies Tel: +44 (0) 20 3884
Capital Limited 7447
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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
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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:
Figure 1 - Podere Maiar - 1 Well Site
Figure 2 - Nitrogen and compressed air tanks
Figure 3: Selva Malvezzi Production Concession
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
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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