TIDMPXEN
RNS Number : 7805N
Prospex Energy PLC
06 June 2022
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
6 June 2022
Prospex Energy PLC
('Prospex' or the 'Company')
Po Valley: Production Concession Approval Process Update
Prospex Energy PLC, the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that Po
Valley E nergy Limited (ASX:PVE) ('Po Valley' or the 'Operator')
has received the penultimate approval for production at the Podere
Maiar gas field located in onshore northern Italy, which lies
within the Selva Malvezzi Production Concession ('Selva'). Prospex
holds a 37% working interest in the Podere Gallina Exploration
Permit with the Operator holding the remaining 63%.
Highlights
-- Emilia Romagna Regional Council approves INTESA (local
government production agreement) for the Podere Maiar gas field at
Selva
-- INTESA is a prerequisite for Italy's Ecological Transition
Ministry ('MiTE') to grant a Final Production Concession at Podere
Maiar
-- Final Production Concession will allow Po Valley to install
gas plant and a 1km pipeline - contract negotiations are underway
to complete this
-- The Company expects first gas from Podere Maiar in the first
half of 2023, subject to final approval
Mark Routh, Prospex's CEO, commented:
"We are extremely pleased that the regional authorities have
approved the INTESA having received no objections from the local
authorities to proceed with the gas development. This marks an
important step in progressing Podere Maiar towards production.
"This approval from the Emilia Romagna regional council has
taken some time to achieve and we are pleased to now be moving
towards the Final Production Concession alongside our partners, Po
Valley, so that we can stay on track for our goal of first gas from
Podere Maiar next year."
Further Information
Po Valley was awarded the Selva Malvezzi preliminary gas
Production Concession (80.68km(2) ) in 2019 and received the final
Environmental Impact Assessment ('EIA') decree issued by the
Ministry on 29 March 2021.
The Podere Maiar gas field, within Selva, is in a defined
"suitable area" under the Plan of Areas (PiTESAI). Granting of the
INTESA opens the way for the anticipated grant of the Final
Production Concession by the Ministry. This will allow Po Valley to
proceed with installing a fully automated gas plant at the existing
Selva/Podere Maiar 1dir well site and a 1,000m (1km) pipeline to
the adjacent National Gas Grid, where the regulator SNAM can
connect the pipeline to the grid.
Po Valley has commenced negotiating contracts to complete this
construction in a timely manner, with anticipated first gas from
Podere Maiar in the first half of CY2023. Based on dynamic
reservoir studies, the field development is designed to produce at
a maximum rate of up to 150,000 cubic metres/day (5.3 million
standard cubic feet per day ('MMscfd')) from successfully tested C1
and C2 production levels in the Medium- Upper Pliocene sands of the
Porto Garibaldi Formation. (Refer to Po Valley (ASX:PVE) ASX
release dated 29 May 2018)
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
Rory Murphy 7409 3494
Andrew Monk (Corporate Broking) VSA Capital Limited Tel: +44 (0) 20
Andrew Raca/Alex Cabral (Corporate 3005 5000
Finance)
Colin Rowbury Novum Securities Tel: +44 (0) 20
Jon Belliss Limited 7399 9427
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ana Ribeiro Limited 7236 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 El Romeral and Tarba
The El Romeral gas and power project in Spain, with gas
production wells supplying natural gas to an 8.1MW power plant near
Carmona in Southern Spain is owned and operated by Tarba Energía SL
('Tarba'). It is currently operating at about 20% of its full
capacity because Tarba is waiting on permits to drill further
infill wells on the concessions to increase production. Prospex
owns a 49.9% working interest in the El Romeral project via Tarba.
The remaining 51.1% working interest is owned by Warrego Energy
Limited (ASX:WGO). Tarba sells electricity generated from the plant
on the spot market in Spain. Current spot market prices have
reached all-time highs in recent months. The El Romeral licences
comprise three contiguous production concessions.
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 up-dip of the previous wells on the Selva field. The
Company now has a 37% working interest in the Podere Gallina
licence.
The Podere Gallina Licence holds independently verified 2P gross
reserves of 13.4 Bcf (5.0 Bcf net to Prospex at 37% WI), gross
Contingent 2C Resources of 14.1 Bcf (5.2 Bcf net) and a further
91.5 Bcf of gross Best Estimate Prospective Resources (33.9 Bcf
net).
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.
The CPR also attributed Best Estimate gross prospective
(un-risked) gas resources of 1,493 MMscm (52.7 Bcf) on the Podere
Gallina Licence in three separate structures.
References:
[1] Source : "Competent Person's Report Podere Gallina Licence,
Italy" prepared by CGG Services (UK) Limited in January 2019
https://bit.ly/3nZNfYf ].
Glossary:
scm Standard cubic metres
MMscm Million standard cubic metres
Bcf Billion standard cubic feet
MMscfd million standard cubic feet per day
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.
The updated Corporate Presentation for Q2-2022 is available on
the Company's website at https://bit.ly/3vhTXwL .
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