Prospex Energy plc (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to announce that Po Valley Energy Limited (ASX: PVE) ("Po Valley Energy", "Po Valley", "PVE") has successfully obtained regional approval ("INTESA") from the Emilia Romagna Regional Council to commence its works under the planned 3D seismic campaign. This campaign covers the entire Selva Malvezzi Production Concession Area (the "Concession") and is an integral part of the ongoing development programme, which envisages the drilling of four new wells on the Concession, building upon the current Podere Maiar-1 well, which produced 7.02 MMscm of gas (2.6 MMscm net to Prospex) and gross revenue of €2.76 million (€1.02 million net to Prospex) during Q3-2024. Po Valley Operations Pty Limited ("PVO"), a wholly owned subsidiary of PVE, is the operator of the Concession (the "Operator"), which has a 63% working interest, while Prospex has the remaining 37% working interest.
The granting of the Regional INTESA is an important step in the authorisation process, which will complete with the issuing of a formal decree from the Ministry of Environment and Energy Security once all documentation has been verified. This formal decree is expected imminently.
In anticipation of the INTESA, the Operator has completed all preliminary works in relation to the design, planning and permitting of the campaign. Now with the grant of the INTESA, it will be able to commence the formalisation of the permitting and agreements with landowners. As part of these preparatory activities, the Operator participated in constructive co-ordination meetings with the relevant farmers associations and has worked closely with relevant representatives to ensure that all the planned activity aligns with industry best practices.
The nature of the 3D seismic campaign and the technology that will be used is purposefully designed to ensure that the environmental footprint is negligible and can be carried out quickly. The campaign is expected to take no more than three weeks. Funding for this 3D seismic campaign is fully covered from accumulated production income.
Once the seismic data has been acquired, the dataset will be processed and interpreted in-house with the aim of optimising the subsurface drilling locations targeted by the planned four new wells on the Concession. The Environmental Impact Assessment to obtain the permits to drill these four new wells was lodged with the Ministry of Environment and Energy Security on 24 December 2024.
The Company will provide further updates on relevant developments to the 3D seismic campaign as the activity is progressed.
Mark Routh, Prospex's CEO, commented:
"I am very pleased to report that Po Valley Energy, the operator of our Selva Malvezzi Production Concession, has received approval from the local regional authorities to proceed with the 3D seismic acquisition programme. This is a crucial step in achieving full regulatory approval for the campaign so that acquisition can commence very shortly.
"This new 3D seismic dataset will be acquired and processed early this year in order to optimise the subsurface drilling targets for four planned wells - two development wells into structures classified as contingent resources, North Selva and South Selva, and two exploration wells classified as prospective resources, East Selva and Riccardina. These wells, which are targeting a total of 88 Bcf gross (33 Bcf net to Prospex), are anticipated to receive permits to drill in the second half of 2025."
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.