Prospex Energy plc said it had achieved stable production rates and “substantial” cash flows from the Podere Maiar-1 gas facility on the Selva Malvezzi production concession in north Italy.
PRODUCTION
Operator Po Valley Energy Ltd (63%) began production at PM-1 on 4 July and reached c.72,000 standard cubic metres per day (scm/d) during the initial testing period expected to end by 31 December 2023.
October production was temporarily at c.62,000 scm/d as part of the testing programme, which is due to increase in November.
The JV is targeting longer term production rates from the well of at least 80,000 scm/d.
All the PM-1 gas is sold to BP Gas Marketing under the 18-month supply agreement.
Gross production for the three months ended September from Selva Malvezzi was 5,658,117 scm (2,093,503 scm net to Prospex) with gross revenue of €1,937,072 (€716,717 net).
Prospex’s proceeds will go towards progressing agreements with local landowners and the permitting process with the regulatory authorities for drilling activities at Selva North, South and East.
STRATEGY
Chief executive Mark Routh added that the company was in the “enviable” position of having stable production and income from an oshore natural gas field in Spain and Italy.
“We have delivered 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.
“We are proud to be supporting the European energy sector with producing assets in both Italy and Spain.”