Italy: Selva Field Development Update
Successful Recovery of €757,000 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 €757,000 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.
· PVO has successfully recovered the €757,000 performance bond (€280,090 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 €757,000 with €280,090 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.”
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