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
Average gross daily production rate (scm)
Mar 2024 Quarter (Q1-2024): 69,976
Jun 2024 Quarter (Q2-2024): 74,904
Sept 2024 Quarter (Q3-2024): 76,910
Dec 2024 Quarter (Q4-2024): 79,596
Quarterly net (37%) production (MMscm)
Mar 2024 Quarter (Q1-2024): 2.363
Jun 2024 Quarter (Q2-2024): 2.529
Sept 2024 Quarter (Q3-2024): 2.596
Dec 2024 Quarter (Q4-2024): 2.710
Weighted average price (per scm)
Mar 2024 Quarter (Q1-2024): 鈧� 0.30
Jun 2024 Quarter (Q2-2024): 鈧� 0.34
Sept 2024 Quarter (Q3-2024): 鈧� 0.39
Dec 2024 Quarter (Q4-2024): 鈧� 0.46
37% Revenue net to Prospex ('000)
Mar 2024 Quarter (Q1-2024): 鈧� 705
Jun 2024 Quarter (Q2-2024): 鈧� 855
Sept 2024 Quarter (Q3-2024): 鈧� 1,020
Dec 2024 Quarter (Q4-2024): 鈧� 1,250
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 鈧�0.46/scm (~鈧�44/MWh) an 18% increase on the previous quarter (鈧�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 鈧�3.38 million (Q4-2023: 鈧�1.77 million), with 鈧�1.25 million net to Prospex (Q4-2023: 鈧�656,122), a 23% increase on the previous quarter Q3-2024 (鈧�2.76 million with 鈧�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.