Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects.
Is pleased to announce that the Operator of the Selva Malvezzi production concession in which Prospex has a 37% working interest, has signed a gas sales agreement (“GSA”) with BP Gas Marketing Limited (“BPGM”), an indirect, wholly owned subsidiary of BP International Limited (“BPI”) under which BPGM will purchase the forecast gas production from the soon to be completed Podere Maiar-1 production facility in the Selva Malvezzi production concession located in the Po Valley Region of Italy. 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.
Highlights
· 18-month GSA contract to commence on 1 April 2023 with potential to extend
· An estimated 37 million standard cubic metres of natural gas is expected to be supplied to BPGM under the contract
· Gas supply price will be linked to Italy’s “Heren PSV day ahead mid” price assessment
· The Joint Venture is fully funded to complete the Podere Maiar-1 production facility development and first gas is on track for early Q2 2023.
Mark Routh, Prospex’s CEO, commented:
“The gas sales agreement with BP Gas Marketing Ltd marks a significant milestone for the Company and its joint venture partner, Po Valley as we get closer to first gas production from the Selva field development. We are delighted that Po Valley has secured the agreement with BP Gas Marketing Limited, a recognisable brand in the industry, to take delivery and sell our gas and look forward to working with them. Prospex is selling its share of the gas production jointly with the Operator, Po Valley, under a joint marketing agreement, in order to optimise the value of our gas sales.
“First gas is still on track for early in the second quarter of 2023, on schedule and on budget.”
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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For further information visit www.prospex.energy or contact the following:
Mark Routh
Prospex Energy PLC
Tel: +44 (0) 20 7236 1177
Ritchie Balmer
Rory Murphy
Strand Hanson Limited
Tel: +44 (0) 20 7409 3494
