Prospex Energy plc said its joint venture (JV) partner Po Valley Energy Ltd had received the production concession for the Podere Maiar onshore gas field in the Po Valley, northern Italy.
LICENCE
The gas field lies within the Selva Malvezzi production concession.
Prospex owns a 37% working interest in the Podere Maiar licence with operator Po Valley holding 63%.
CONTRACTS
Italy’s Ministry of Ecological Transition approved the production concession on the assumption that the JV met the development costs and secured the necessary contractors for the development work.
The partners anticipate first gas during H1 2023.
Prospex said that the JV would award contracts and make first payments for construction of the automated gas plant facilities, installation of a 1,000 metre four-inch pipeline and connection to the national gas grid network operated by SNAM.
The company will now pay its 37% share of the €757,000 SNAM bond (€280,090 net to Prospex) necessary to procure the connection to the national gas grid.
INDIGENOUS GAS
Chief executive Mark Routh said the concession allowed work to start immediately to connect the suspended Podere Maiar-1 well to the adjacent national gas grid operated by SNAM.
“I acknowledge the hard work and advanced planning by the operator’s team in Italy whose perseverance and professionalism has led to securing this major milestone for both Po Valley and Prospex.
“The development of this indigenous gas field is good for local jobs, boosts the economy of the region and although relatively small, this gas production will go some way towards alleviating the energy and gas supply shortfalls being experienced in Italy and indeed the whole of Europe.”