Prospex Energy PLC Italy: Selva Field Development Update (8971A)

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: [phone] 
 Rory Murphy                          Limited                             3494 
Andrew Monk (Corporate Broking)      VSA Capital Limited  Tel: [phone] 
 Andrew Raca/Alex Cabral (Corporate                                       5000 
 Finance) 
Colin Rowbury                        Novum Securities     Tel: [phone] 
 Jon Belliss                          Limited                             9427 
Susie Geliher                        St Brides Partners   Tel: [phone] 
 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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May 30, 2023 02:00 ET (06:00 GMT)