TIDMPXEN
RNS Number : 9131R
Prospex Energy PLC
01 November 2023
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
1 November 2023
Prospex Energy PLC
('Prospex' or the 'Company')
Italy: Selva Field Development
Q3 2023 Operational Update
More than 5.6 million scm gas produced 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
provide an Operational Update including production rates and income
for the three months ended 30 September 2023 from the Podere
Maiar-1 ("PM-1") gas facility of the Selva Field which is operated
by Po Valley Operations Pty Limited ("PVO"), a wholly owned
subsidiary of Po Valley Energy Limited ("Po Valley Energy") (ASX:
PVE).
Po Valley Energy has a 63% working interest of the Selva
Malvezzi production concession, while Prospex has the remaining 37%
working interest.
Operational and Financial Overview
-- PM-1 commenced gas production on 4 July 2023.
-- Following a four-week ramp-up and commissioning programme the
PM-1 well flowed at daily production levels of c.72,000 standard
cubic metres per day (scm/d) during the initial testing period,
which is expected to be concluded by the end of December 2023.
-- October production is temporarily running at c.62,000 scm/d
as part of the testing programme which is expected to increase in
November.
-- Longer term production rates from the well are targeting at least 80,000 scm/d.
-- All the PM-1 gas is sold to BP Gas Marketing under the
18-month supply agreement (announced on 14 February 2023) at a
supply price linked to Italy's "Heren PSV day ahead mid" price
assessment which tracks the publicly available Dutch TTF spot
prices([1]) .
-- Gas prices have increased recently from EUR0.32/scm
(EUR30.3/MWhr) to a current spot price of EUR0.53/scm
(EUR50.3/MWhr). The forward curve TTF gas prices are currently
above EUR50/MWhr through to the end of Q1 2025([1]) .
-- Gross quarterly production from the Selva Malvezzi production
concession was 5,658,117 scm (2,093,503 scm net to PXEN) and gross
revenue for the quarter was EUR1,937,072 (EUR716,717 net to
PXEN).
-- Further upside potential at the Selva Malvezzi Production
Concession is advancing at pace with the operator progressing
agreements with local landowners and the permitting process with
the regulatory authorities to deliver the drilling programmes at
Selva North, South and East.
Mark Routh, Prospex's CEO, commented:
"Delivering the stable production rates and moreover securing
the substantial cash flows from the brand-new gas plant at the PM-1
gas facility is a significant achievement by the operator of our
Selva Malvezzi production concession, Po Valley Energy. This places
Prospex in the enviable position of having stable production and
income from two onshore natural gas fields one in Spain and one in
Italy.
"Prospex is working together with the Po Valley team and using
this production income to progress the necessary activities to
secure the development drilling programmes for the other structures
on the production concession in order to convert those contingent
and prospective resources into proved, developed and producing
reserves in the near term.
"We have 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."
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 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)
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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:
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).([2])
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.([2]) It attributed a total of 379
MMscm (13.4 Bcf) gross 2P reserves for the Selva redevelopment
project.
References:
[1] Source: ICE website forward curve gas prices for the TTF.
https://www.ice.com/products/27996665/Dutch-TTF-Gas-Futures/data?marketId=5360399
[2] 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.
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END
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