Prospex Energy PLC (AIM: PXEN) Italy: Selva Malvezzi Q1 2024 Activity Report

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 Q1 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 Q1 2024.

·    Average daily production for the quarter was in the order of ~80,000 scm/d.

·    A standard slickline operation in March 2024 confirmed strong pressure build up confirming the average daily production rate for the foreseeable future.

·    PM-1 is supplying the gas to BP Gas Marketing under an 18-month offtake agreement.

·    The weighted average gas sales price for the quarter was €0.30/scm (~€29/MWh).

·    Gross Quarterly production was 6,385,255 scm of gas (2,362,544 scm net to Prospex) and gross revenue for the quarter was €1,906,891 (€705,549 net to Prospex).

·    The operator is progressing the permitting process with the regulatory authorities on the other projects in the Selva Malvezzi production concession.

·    Following a successful project of reprocessing the existing 2D seismic lines in the production concession, the Joint Venture is now evaluating the potential for a new seismic acquisition programme over the licence area in order to optimise the drilling programmes of the identified contingent resources at Selva North, Selva South and the East Selva and Riccardina prospects.

Gas production at the PM-1 gas facility in the Selva Malvezzi Production Concession for the quarter is shown in the table below:

Production has been consistent throughout the quarter averaging ~78,000 scm/d to ~80,000 scm/d, with exception of days during which slickline operations were undertaken.  During the quarter, the operator carried out three slickline operations.  The first was conducted in early January 2024 confirming results from December 2023, the second was conducted at end of January with the third programme completed in late March 2024.  All results of bottom hole pressure and temperature readings in static conditions were in line with expectations with ongoing monitoring for any debris undertaken to ensure no accumulation issues were present.

Mark Routh, Prospex’s CEO, commented:

“Po Valley Energy continues with safe and reliable operations at the Selva Malvezzi production concession.

“We are actively advancing  the necessary activities to facilitate development drilling programmes at Selva Malvezzi with the target of converting the contingent resources at Selva North and Selva South and the prospective resources at East Selva and Riccardina into proved, developed and producing reserves in the near term.”

For further information visit www.prospex.energy or contact the following: