Prospex Oil and Gas PLC Prelim production concession application approval (0658N)
15 January 2019 - 6:00PM
UK Regulatory
TIDMPXOG
RNS Number : 0658N
Prospex Oil and Gas PLC
15 January 2019
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
15 January 2019
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Preliminary approval of production concession application,
onshore Italy
Further to the announcement of 29 May 2018, Prospex Oil and Gas
Plc, the AIM quoted investment company, is pleased to announce that
it has been advised by the operator, Po Valley Operations Limited
('PVO'), that the production concession application to develop the
Selva Malvezzi Gas-Field ('Selva') in northern Italy (the
'Production Concession') has received preliminary approval from the
Italian Government. Prospex holds a 17% interest in Selva, which
sits within the 331km(2) Podere Gallina Exploration Permit (the
'Podere Gallina') in the Po Valley region of Italy.
The Development
The proposed development centers on the installation of a fully
automated gas plant at the existing Selva/Podere Maiar-1d
appraisal/redevelopment well site. Based on dynamic reservoir
studies, phase one is targeting daily production at a rate of up to
150,000 cubic metres (5.3 mmscf/d) from two gas-bearing reservoirs,
C1 and C2, in the Medium-Upper Pliocene sands of the Porto
Garibaldi formation. In addition, a 1km long pipeline will be laid
to connect the plant to the Italian National Grid.
Podere Maiar was drilled in Q4 2017 into Selva (previously
operated by ENI), which historically produced 83Bcf of gas between
1960 and 1984. During testing, peak flow rates of 148,136 scm/day
(5.2mmscf/d) on a 3/8 inch choke and 129,658 scm/day (4.6 mmscf/d)
on a 3/8 inch choke were recorded from the C1 and C2 reservoirs
respectively.
A further phase of the development is planned, which is
contingent on the results of a planned 3D seismic acquisition
programme (subject to JV approval) and involves PVO drilling
additional wells to significantly expand the Production
Concession's natural gas resource base. Drilling will target
prospects including Selva East and Selva South Flank which fall
within the Production Concession area. 3D seismic will be acquired
across these areas in 2019.
Final approval from the Italian Government is subject to
customary regulatory processes being completed, including the
approval of an Environmental Impact Assessment.
Prospex non-executive Chairman, Bill Smith, said, "With the
preliminary approval of this Production Concession, Podere Gallina
remains on course to become Prospex's second revenue generative
asset when it comes on stream in 2020, alongside our 50% interest
in the producing Suceava licence in Romania. As with Suceava,
Podere Gallina offers significant development upside and,
importantly, the approved development plan covers multiple
prospects that have already been identified on the licence. These
prospects will be targeted through the acquisition of 3D seismic
data to further de-risk the additional prospectivity and inform a
future well programme.
"The approval marks an excellent start to 2019 for Prospex. With
activity planned across our portfolio, including work to advance
the up to 2 Tcf Tesorillo Gas Project in southern Spain, together
with our continued efforts to acquire interests in additional
onshore European projects that match our strict investment
criteria, 2019 promises to be an exciting year for Prospex. I look
forward to providing further updates on our progress, as we focus
on exposing our shareholders to a continuous pipeline of
opportunities that offer significant re-rating potential."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Plc Tel: +44 (0) 20 3766
0325
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Jack Botros
Duncan Vasey Peterhouse Corporate Finance Tel: +44 (0) 20 7469
0932
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236
Priit Piip 1177
Notes
Prospex Oil and Gas 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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