PXEN Prospex Energy Plc

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

31 January 2025

Prospex Energy plc

("Prospex" or the "Company")

Italy: Selva Malvezzi Production Concession

Q4 2024 Activity Report

Gross Production and Revenues Increase by over 90% YoY at PM-1

Prospex Energy plc (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to provide an update from the Selva Malvezzi production concession in Italy following the publication by Po Valley Energy Limited ("Po Valley Energy") (ASX: PVE) of its Q4‑2024 activity report.  Po Valley Operations Pty Limited ("PVO"), a wholly owned subsidiary of PVE is the operator of the Selva Malvezzi production concession, which has a 63% working interest, while Prospex has the remaining 37% working interest.

Gas production and revenues from PM-1 gas facility in the Selva Malvezzi Production Concession

Highlights

·    Steady gas production in line with expectations from the Podere Maiar-1 well at Selva ("PM‑1") for the quarter averaging approximately 80,000 scm/d.

·    Robust gas prices with the average weighted gas sales price for the quarter at €0.46/scm (~€44/MWh) an 18% increase on the previous quarter (€0.39/scm) due to strong market conditions.

·    Gross quarterly production of 7.323MMscm of gas (Q4‑2023: 4.180MMscm), with 2.71MMscm net to Prospex (Q4‑2023: 1.547MMscm).

·    Gross revenue for the quarter of €3.38 million (Q4‑2023: €1.77 million), with €1.25 million net to Prospex (Q4‑2023: €656,122), a 23% increase on the previous quarter Q3‑2024 (€2.76 million with €1,020 net to Prospex) and 91% increase on Q4‑2023.

·    PM-1 continues to sell the gas to BP Gas Marketing.

·    Drilling applications for four new wells in the Selva Malvezzi production concession were filed in Q3-2024 with the technical office of the Ministry of Environment and Energy Security.

·    No significant disruptions to production and no stoppages for any slick line operations in Q4‑2024, with the well continuing to operate in line with expectations.  The next slick line operation is planned for later in Q1‑2025.

·    Environmental Impact Studies for the four new wells and related development within the Selva Malvezzi Production Concession submitted with the relevant department at the Ministry of Environment and Energy Security in December 2024.

·    Preparation for the 3D geophysical survey acquisition on the Selva Malvezzi Production Concession was significantly progressed during Q4‑2024.  All environmental approvals have been received and planning and permitting well advanced.  The geophysical campaign will commence once final ministerial approval is received.

Mark Routh, Prospex's CEO, commented:

"I am very pleased to report that Po Valley Energy, the operator of our Selva Malvezzi Production Concession continues to maintain, safe, reliable and efficient operations, ensuring consistent and increasing income.  Gas prices in Europe remain strong with revenues accumulating well which will facilitate the funding of future development and drilling campaigns.

"With significant progress on permit applications to drill four further wells on the concession, the planned 3D seismic survey about to receive its final approval and with acquisition imminent, the Company's investment in the Selva Malvezzi production concession continues to provide high value to shareholders."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

* * 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, which produces from the Podere Maiar-1 well, 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]

The operator has decided to re-name the discoveries and prospects on the concession.  North Selva is to be renamed Casale Guida 1d, South Selva is to be renamed Ronchi 1d, East Selva is to be renamed Selva Malvezzi 1d and Riccardina is to be renamed Bagnarola 1d.

The drilling programmes for the four new drilling projects at Casale Guida 1d (North Selva), Ronchi 1d (South Selva), Selva Malvezzi 1d (East Selva) and Bagnarola 1d (Riccardina) were filed for drilling authorisation to UNMIG department of the Italian Ministry of Environment and Energy Security (MASE) in September 2024.  The Environmental Impact Study for drilling, development and production of the four wells was submitted in December 2024.

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.

 Appendix

Figure 1: Selva Malvezzi Production Concession