TIDMPXEN
RNS Number : 5550Z
Prospex Energy PLC
16 May 2023
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
16 May 2023
Prospex Energy PLC
('Prospex' or the 'Company')
Italy: Selva Field Development
Completion of gas plant construction and connection to gas
grid
Prospex Energy PLC (AIM: PXEN), the AIM quoted investment
company focused on European gas and power projects, is pleased to
announce that construction of the gas plant at the Podere Maiar-1
wellsite of the Selva field in the Po Valley, Italy has been
completed. The connection to the gas grid operated by SNAM is also
complete allowing the delivery of gas to the market as soon as
final operational and safety inspections are complete, which the
operator, Po Valley Energy anticipates by the end of May.
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
-- Podere Maiar-1 ("PM-1") gas plant development is complete and ready for commissioning
-- SNAM connections are complete, enabling delivery of PM-1 gas to the SNAM gas grid in Italy
-- Commercial arrangements complete, allowing PM-1 gas to be
delivered under the gas supply agreement announced on 14 February
2023
-- With the SNAM connection and transmission arrangements
finalised, Po Valley Operations has initiated the process of
recovering EUR757,000 performance bond funds (100% basis -
EUR280,090 net to Prospex), previously deposited with SNAM
-- PM-1 gas plant construction and development achieved with
only minor cost increases. This result is particularly noteworthy
given the current inflationary environment and supply chain
issues
-- First gas supply from PM-1 is contingent upon final operation
and safety inspection. PVO anticipates this prior to the end of the
month
The completion of SNAM connections and commercial arrangements
paves the way for the delivery of PM-1 gas to the SNAM grid in
Italy. With these connections and arrangements in place, PM-1 gas
can now be delivered under the gas supply agreement, announced on
14 February 2023.
Additionally, the successful completion of the SNAM connection
and transmission arrangements has resulted in PVO initiating the
process for the recovery of the performance bond funds deposited
with SNAM. The amount involved in this recovery process is
EUR757,000 (100% basis), with EUR280,090 net to Prospex.
Construction and grid connection has been largely completed on
schedule and budget, with only a 3% cost difference to budgeted
expenditure. This amounts to EUR132,000 (100% basis), EUR48,840 net
to Prospex. Given the global supply chain concerns the joint
venture is delighted with this outcome.
Initial production of PM-1 gas is contingent on the signoff of
the final operation and safety inspection. PVO anticipates that
this will occur before the end of May 2023.
Mark Routh, Prospex's CEO, commented:
"I congratulate the team at Po Valley for delivering a safe and
very high-quality gas plant development. This has been achieved by
PVO and the main contractor, TESI working with the SNAM
construction engineers to install the new gas processing plant and
the construction and connection to the SNAM operated national grid
network. This has in turn triggered the recovery of the performance
bond deposited with SNAM worth EUR280,090 to Prospex.
"I was fortunate to visit the well site at the same time as the
PVE board in late April and saw first-hand the high standards of
installed equipment and importantly the robust safety culture of
the TESI and PVO teams. The development has been delivered on
schedule and within our budgeted contingency, which is a
significant achievement with the ongoing supply chain challenges
facing the industry generally. I look forward to updating
shareholders on the commissioning and delivery of first gas to the
SNAM grid, which the operator anticipates by the end of May."
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 PLC Tel: +44 (0) 20 7236
1177
Ritchie Balmer Strand Hanson Limited Tel: +44 (0) 20 7409
Rory Murphy 3494
-------------------------- --------------------
Andrew Monk (Corporate VSA Capital Limited Tel: +44 (0) 20 3005
Broking) 5000
Andrew Raca/Alex
Cabral (Corporate
Finance)
-------------------------- --------------------
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
-------------------------- --------------------
Susie Geliher St Brides Partners Limited Tel: +44 (0) 20 7236
Ana Ribeiro 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:
PM - 1 gas plant complete and ready for commissioning
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 January 2019
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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END
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