Prospex Energy, the AIM quoted investment company focused on European gas and power projects, has announced the start of gas production from the Podere Maiar-1 ('PM-1') gas facility at the Selva field in the Po Valley region of northern Italy. First gas was achieved following the completion of operational and safety inspections with successful sign off from UNMIG and the Fire Department and subsequent go-ahead from the Ministry last week, solidifying its authorisation for gas production at PM-1.
Construction and grid connection of PM-1 to the SNAM grid in Italy was announced on the 16 May 2023, with all activities completed on schedule and within 3% of budget.
Po Valley Operations Pty Limited ('PVO'), a wholly owned subsidiary of Po Valley Energy, is the Operator of the Selva Malvezzi production concession with a 63% working interest, while Prospex has the remaining 37% working interest.
Highlights
- Podere Maiar-1 commenced gas production in Italy, delivering first gas on 4 July 2023
- First gas will provide the Company with its maiden revenue from the Selva Malvezzi Production Concession in Italy
- PM-1 will provide gas directly to the domestic Italian market under an 18-month supply agreement with BP Gas Marketing announced on 14 February 2023
- Further upside potential at the Selva Malvezzi Production Concession (Figure 1), as Po Valley Energy, the Operator, intends to advance other projects within the Concession.
Mark Routh, Prospex's CEO, commented:
'I am absolutely thrilled to be announcing the start of first gas from the Podere Maiar-1 well in the Selva Field, a pivotal milestone in our company's development and a credit to the work of our partners at Po Valley Energy and their team on the ground, Po Valley Operations, who have made today's announcement possible.
'I would also like to thank our shareholders, who have supported us as we transitioned to become a gas producer in Italy with guaranteed revenues from our 37% interest in the field, on the back of the 18-month supply agreement with BP Gas Marketing. We are optimistic additional gas producing wells will be developed within this Concession which hosts several lookalike prospective wells and we look forward to updating the market on our progress in this regard.
'This is a key step in the Company's strategy to become a diversified energy producer with multiple producing assets principally in lower risk, onshore European markets with ready access to infrastructure'.
As part of the gas production process, Po Valley Energy will actively monitor production parameters in order to determine the optimal flow rate and ensure sustainable production levels from the Podere Maiar-1 well. By settling on a sustainable flow rate, it aims to maximise the production potential from the Selva Malvezzi concession. The Company will update shareholders on the production rates in the coming months.
Source: Prospex Energy
