Prospex Eng Regulatory News (PXEN)

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

19 January 2024

Prospex Energy PLC

("Prospex" or the "Company")

Italy: Selva Field Development

Optimal flow rates confirmed at Podere Maiar-1 Gas Well Site

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to provide an operational update from the Podere Maiar-1 ("PM-1") well site of the Selva field, which is operated by Po Valley Operations Pty Limited ("PVO"), a wholly owned subsidiary of Po Valley Energy Limited ("Po Valley Energy") (ASX: PVE).

Po Valley Energy has a 63% working interest of the Selva Malvezzi production concession, while Prospex has the remaining 37% working interest.

Highlights

· After six months of strong gas production, PVO has confirmed that the well is continuing to perform as expected. 

· The commissioning and testing period undertaken by PVO has defined optimal well performance and PVO has confirmed that the testing was successfully undertaken at various production levels.

· Slick line work programmes have been completed to monitor well behaviour and any accumulation of debris.

· Production volumes testing will continue over the next four weeks at ~78,000 scm/d to 80,000 scm/d to be followed by another slick line operation programme before a long-term flow rate is set.

· This confirmatory period allows the PVO team to determine the optimal flow rate to ensure no debris accumulation and to establish the most efficient rate of production for the long term. As a precaution, a Surface Sand Detector is expected to be installed which will provide added protection to the gas plant.

· Further upside potential at the Selva Malvezzi production concession is advancing at pace, with the operator progressing agreements with local landowners and the permitting process with the regulatory authorities in order to deliver the drilling programmes at Selva North, South and East.

Mark Routh, Prospex's CEO, commented:

"The operator of our Selva Malvezzi production concession, Po Valley Energy, is continuing with the diligent monitoring and maintenance of the well performance and production facilities to ensure a safe and reliable income stream from the asset.

"Prospex is working together with the Po Valley Energy team and using the production income to progress the necessary activities to secure the development drilling programmes for the contingent resources at Selva North and Selva South and, for the target of converting prospective resources at East Selva into proved, developed and producing reserves in the near term.

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.

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For further information visit www.prospex.energy or contact the following:

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 Selva:

The Podere Gallina Licence is in the Po Valley region of northern Italy. The licence 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 Podere Gallina licence held via Prospex's two wholly owned subsidiaries, PXOG Marshall Ltd (17% of the Licence) and UOG Italia Srl (20% of the Licence).

The Podere Gallina Licence 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).[2]

An independent Competent Person's Report of the Podere Gallina Licence was prepared by CGG Services (UK) Limited in July 2022 on behalf of the joint venture.[2] It attributed a total of 379 MMscm (13.4 Bcf) gross 2P reserves for the Selva redevelopment project.

References:

[1] Source: ICE website forward curve gas prices for the TTF.  https://www.ice.com/products/27996665/Dutch-TTF-Gas-Futures/data?marketId=5360399

[2] 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.