Prospex Energy, an investor in European gas and power projects, has released its Q4 activity report for the Podere Maiar-1 (PM-1) gas facility located in the Selva field, northern Italy. Prospex holds a 37% working interest in Selva, while the operator, Po Valley, owns the remaining 63%.
Steady Production and Increased Gas Prices
In the fourth quarter, Prospex maintained consistent gas production from the PM-1 well, meeting expectations with an average output of approximately 80,000 standard cubic meters per day (scm/d). Gas prices strengthened during the quarter, enhancing revenues. The average weighted gas sales price reached €0.46 per scm (~€44/MWh) in Q4, marking an 18% increase from the previous quarter’s €0.39 per scm.
Enhanced Production and Revenue Growth
Gross production from PM-1 totaled 7.323 million scm of gas in Q4, a significant rise from 4.180 million scm in Q4 2023. Net production to Prospex increased to 2.71 million scm, up from 1.547 million scm in the same period last year. Consequently, the gross revenue for the quarter surged to €3.38 million, compared to €1.77 million in Q4 2023. Net revenue for Prospex reached €1.25 million, reflecting a 23% increase from the previous quarter and a remarkable 91% increase year-over-year. The PM-1 facility continues to sell gas to BP Gas Marketing under a 12-month extension of the offtake agreement initially signed in February 2023.
Future Drilling Plans
Building on the success of PM-1, Prospex plans to drill four new wells within the Selva Malvezzi concession. Drilling applications were submitted to the Italian Ministry of Environment and Energy Security in Q3 2024. Additionally, environmental impact studies for the four planned wells and associated developments were submitted to the ministry in December 2024.
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 to maintain, safe, reliable and efficient operations, ensuring consistent and increasing income. Gas prices in Europe remain strong with revenues accumulating well which will facilitate the funding of future development and drilling campaigns.
“With significant progress on permit applications to drill four further wells on the concession, the planned 3D seismic survey about to receive its final approval and with acquisition imminent, the Company’s investment in the Selva Malvezzi production concession continues to provide high value to shareholders.”
