London, October 31, 2024, (Oilandgaspress) ––– 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 Q3 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.
Highlights
- The Podere Maiar-1 well at Selva (“PM-1”) has continued to perform consistently during Q3 2024.
- Average daily production for the quarter Q3 2024 was 76,910 scm/d.
- PM-1 continues to sell the gas to BP Gas Marketing under a 12-month continuation of the offtake agreement.
- Strong weighted average gas sales price for the quarter of €0.39/scm (~€37/MWh) an increase on the previous quarter (€0.34/scm).
- Gross Quarterly production was 7.02 MMscm of gas (2.6 MMscm net to Prospex) and gross revenue for the quarter was €2.76 million (€1.02 million net to Prospex).
- Routine slick line operation carried out in September 2024 with results in line with expectations and confirming an average daily production rate of 80,000 scm/day for the foreseeable future.
- Four new drilling applications filed with the Ministry of Environment and Energy Security at the end of September 2024. All four wells are located within the Selva Malvezzi Production Concession.
- Environmental Impact Studies for these 4 new wells are well advanced and on track for submission in Q4-24. Upon submission, the Ministry of Environment and Energy Security will commence their formal assessment.
- Preparation for the 3D geophysical survey acquisition on the Selva Malvezzi Production Concession was significantly progressed during the quarter. All environmental approvals have been received. The geophysical campaign will commence once final sign off from the regional authority is received which is expected after the regional elections scheduled for the second half of November 2024.
Gas production and revenues from the PM-1 gas facility in the Selva Malvezzi Production Concession for the four quarters from Q4-2023 to Q3-2024 are shown in the table below:
| PM-1 Production Data | December 2023 Quarter | March 2024 Quarter | June 2024 Quarter | September 2024 Quarter |
| Q4-2023 | Q1-2024 | Q2-2024 | Q3-2024 | |
| Average gross daily production rate (scm) | 45,808 | 69,976 | 74,904 | 76,910 |
| Quarterly net (37%) production (‘000 scm) | 1,546 | 2,363 | 2,529 | 2,596 |
| Weighted average price (per scm) | € 0.40 | € 0.30 | € 0.34 | € 0.39 |
| 37% Revenue net to Prospex (‘000) | € 656 | € 706 | € 855 | € 1,020 |
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 with sound and reliable operations ensuring consistent and increasing income from the concession as gas prices in Europe continue to rise.
“It is also very good news that the permits to drill the four further wells on the concession have been submitted to the regulatory authorities and that there has been positive progress on the permitting process for the 3D seismic survey planned to be acquired from Q4-2024.
“I have been advised by the operational team at Po Valley Energy that the recent flooding in the Emilia Romagna region in northern Italy has not affected the area of the Selva Malvezzi Concession nor the SNAM pipeline connection station.”
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.
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