Prospex Eng Regulatory News (PXEN)

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

21 September 2022

Prospex Energy PLC

('Prospex' or the 'Company')

Italy: Selva Field Development Update

Po Valley secures rights to land title for Podere Maiar-1 well site and pipeline procurement

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to note an announcement made by Po Valley Energy Limited (ASX:PVE) ('Po Valley' or the 'Operator') released on the ASX on Monday 19 September 2022 and provides an update on the Podere Gallina Licence located in the Po Valley onshore in northern Italy, in which lies the Selva gas field within the Selva Malvezzi Production Concession ('Selva'). The Company holds a 37% working interest in the Podere Maiar licence with the Operator holding the remaining 63%.

Highlights

· Po Valley has approved all payments to secure ownership of the land for its Podere Maiar well site in Italy's Selva gas field

· Italy's Institute of Services for the Agricultural Food Market ('ISMEA') has accepted Po Valley's application to obtain the well site land ownership

· All materials relating to the 1km gas pipeline have arrived on site including the steel pipe

· Expenditure relating to land titles and pipeline remain within budget

· Podere Maiar is on track for first gas in early Q2 of 2023

Po Valley announced Monday that it is on track for first gas from the Podere Maiar-1 well in Italy's Selva gas field after ISMEA accepted the Company's application to land titles for the well site.

Po Valley received an official letter from the General Director of Italy's ISMEA accepting its application for the land as well as services for the gas pipeline and associated cables. Payment to secure the land rights is on budget and is being processed immediately (19 September 2022). Once ISMEA confirms the title, Po Valley will have complete access and control over the land required to construct its gas treatment plant and pipeline at the Podere Maiar-1 well site.

In addition, the 4-inch steel pipe has arrived on site and is being stored in readiness for construction of the 1km gas pipeline that connects the Podere Maiar-1 well to the National Gas Grid.

Po Valley continues to progress its application to the National Mining Office for Hydrocarbons and Georesources ('UNMIG') and to the Fire Department for approval for its operations and plans to request UNMIG approval to commence preliminary works on the well site.

Mark Routh, Prospex's CEO, commented:

"We are extremely pleased that Po Valley has secured the land ownership at the Podere Maiair-1 well site location and has purchased the land from several different owners under which the 1 km 4-inch gas export pipeline will be installed to connect the well to the National Gas Grid. Procurement of the steel pipe and related equipment for the tie-in work is complete and all materials are now stored at the well site.

"Pleasingly, Po Valley was able to acquire the land and procure the materials at or below our original cost estimates, ensuring that we're on schedule and on budget to achieve first gas in the early part of the second quarter of 2023. This will secure enhanced cash-flows from the sale of gas into a high demand market. This is clearly very good news for shareholders."

* * ENDS * *

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 Italy. The licence contains the currently shut‑in Selva gas-field as well as exciting exploration 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.

The Podere Gallina Licence holds independently verified 2P gross 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 91.5 Bcf of gross Best Estimate Prospective Resources (33.9 Bcf net).[1]

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 Q3-2022 is available on the Company's website at https://www.prospex.energy/home/