Prospex Energy PLC Update on the Selva Field Development in Italy (2641Q)
October 26 2021 - 3:15AM
UK Regulatory
TIDMPXEN
RNS Number : 2641Q
Prospex Energy PLC
26 October 2021
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
26 October 2021
Prospex Energy PLC
Update on the Selva Field Development in Italy
Prospex Energy PLC, ('Prospex' or the 'Company') the AIM quoted
investment company (AIM:PXEN) focused on European gas and power
projects, provides an update on the Selva field development project
in Italy, in which the Company holds a current 17% interest,
following an announcement on the ASX by the operator, Po Valley
Energy.
Schedule and capital expenditure update.
Po Valley Energy, the operator of the Podere Gallina licence in
Italy in which the Selva field is situated, has been advised by
SNAM, the national pipeline operator in Italy, of a delay to tie-in
the Selva field to the national gas grid. SNAM is responsible for
the both the costs to construct the grid connection point for new
gas developments, as well as the construction itself.
Following a review of the tie-in execution plan with pipeline
operator SNAM, the operator has been informed that the estimated
time to complete the tie-in would delay first gas to 1H 2023. The
tie-in to the gas grid can only be done by SNAM in accordance with
the Italian gas network code and the delay is, in part, as a result
of supply chain disruption due to COVID-19 impacts. Po Valley
Energy also advises that there is an increased cost estimate of
approximately 15% for related materials, namely steel, which is
likely to result in an increase in the gross development capex for
the Selva Gas field from EUR2.3 million to EUR2.65 million.
Regulatory approvals
The Ministry has confirmed the Selva production concession is
progressing and it is expected that the INTESA (the agreement) for
Selva to be approved is on schedule by the Regional Government in
4Q 2021 and that the full production concession is expected to be
granted in 1Q 2022.
Environmental Monitoring
Initial GPS monitoring began in June 2020 and this programme
will be continued jointly with seismic and subsidence monitoring
programmes. The first 12 months of full monitoring will be
completed by December 2022.
Mark Routh Prospex's CEO commented:
"It is disappointing that the revised schedule for the tie-in
works for our 4-inch pipeline to the national gas grid will delay
the delivery of first gas from this project at a time when Europe
is facing an unprecedented energy crisis and a shortage of gas. We
have asked Po Valley Energy, as operator, to engage with SNAM to
seek an acceleration of the tie-in works to the national grid
network."
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
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
Duncan Vasey Peterhouse Capital Tel: +44 (0) 20 7220
Limited 9797
Susie Geliher St Brides Partners Tel: +44 (0) 20 7236
Catherine Leftley Ltd 1177
Notes
About Selva:
The Podere Gallina Licence is in the Po Valley region of Italy.
The licence contains the currently shut--in Selva gas-field as well
as exciting exploration opportunities. The Podere Maiar-1 well was
completed in December 2017 and successfully found a commercial gas
accumulation updip of the previous wells on the Selva field. The
Company has as 17% working interest in the Podere Gallina
licence.
The Company announced on 10 August 2021 the conditional
acquisition of a further 20% of the Podere Gallina licence from AIM
quoted United Oil and Gas plc (AIM:UOG) ("UOG") and UOG Holdings
plc (a wholly owned subsidiary of UOG) by way of a corporate
transaction of 100% of UOG Italia S.r.l. ("UOG Italia") which has a
20% working interest in the Podere Gallina licence which contains
the Selva Gas Field. UOG Italia is a wholly owned subsidiary of UOG
Holdings plc.
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