PXEN Prospex Energy Plc

Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas

28 January 2025

Prospex Energy plc

("Prospex" or the "Company")

Italy: Selva Malvezzi Production Concession

Approval of 3D Seismic Campaign

Prospex Energy plc (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to announce that Po Valley Energy Limited (ASX: PVE) ("Po Valley Energy", "Po Valley", "PVE") has successfully obtained regional approval ("INTESA") from the Emilia Romagna Regional Council to commence its works under the planned 3D seismic campaign. This campaign covers the entire Selva Malvezzi Production Concession Area (the "Concession") and is an integral part of the ongoing development programme, which envisages the drilling of four new wells on the Concession, building upon the current Podere Maiar-1 well, which produced 7.02 MMscm of gas (2.6 MMscm net to Prospex) and gross revenue of €2.76 million (€1.02 million net to Prospex) during Q3‑2024.  Po Valley Operations Pty Limited ("PVO"), a wholly owned subsidiary of PVE, is the operator of the Concession (the "Operator"), which has a 63% working interest, while Prospex has the remaining 37% working interest.

The granting of the Regional INTESA is an important step in the authorisation process, which will complete with the issuing of a formal decree from the Ministry of Environment and Energy Security once all documentation has been verified. This formal decree is expected imminently.

In anticipation of the INTESA, the Operator has completed all preliminary works in relation to the design, planning and permitting of the campaign.  Now with the grant of the INTESA, it will be able to commence the formalisation of the permitting and agreements with landowners. As part of these preparatory activities, the Operator participated in constructive co-ordination meetings with the relevant farmers associations and has worked closely with relevant representatives to ensure that all the planned activity aligns with industry best practices.

The nature of the 3D seismic campaign and the technology that will be used is purposefully designed to ensure that the environmental footprint is negligible and can be carried out quickly.  The campaign is expected to take no more than three weeks.  Funding for this 3D seismic campaign is fully covered from accumulated production income.

Once the seismic data has been acquired, the dataset will be processed and interpreted in-house with the aim of optimising the subsurface drilling locations targeted by the planned four new wells on the Concession.  The Environmental Impact Assessment to obtain the permits to drill these four new wells was lodged with the Ministry of Environment and Energy Security on 24 December 2024.

The Company will provide further updates on relevant developments to the 3D seismic campaign as the activity is progressed.

Mark Routh, Prospex's CEO, commented:

"I am very pleased to report that Po Valley Energy, the operator of our Selva Malvezzi Production Concession, has received approval from the local regional authorities to proceed with the 3D seismic acquisition programme.  This is a crucial step in achieving full regulatory approval for the campaign so that acquisition can commence very shortly.

"This new 3D seismic dataset will be acquired and processed early this year in order to optimise the subsurface drilling targets for four planned wells - two development wells into structures classified as contingent resources, North Selva and South Selva, and two exploration wells classified as prospective resources, East Selva and Riccardina.  These wells, which are targeting a total of 88 Bcf gross (33 Bcf net to Prospex), are anticipated to receive permits to drill in the second half of 2025."

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, please contact:

Further information on the Company can be found on its website at www.prospex.energy.

Notes

Prospex Energy PLC is an AIM quoted investment company focused 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:

The Selva Malvezzi Production Concession is in the Po Valley region of northern Italy.  The concession contains the 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 Production Concession held via Prospex's two wholly owned subsidiaries, PXOG Marshall Ltd (17% of the Licence) and UOG Italia Srl (20% of the Licence).

The Selva Malvezzi Production Concession holds independently verified 2P gross proven 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 which was converted into the Selva Malvezzi Production Concession at first gas in July 2023, was prepared by CGG Services (UK) Limited in July 2022 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/44VF02A

Glossary:

scm                        Standard cubic metres

scm/d                    Standard cubic metres per day

MMscm                 Million standard cubic metres

Bcf                        Billion standard cubic feet

MMscfd                 million standard cubic feet per day

MWh                     Mega Watt hour

TTF                       The 'Title Transfer Facility' - a virtual trading point for natural gas in the Netherlands.

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.