Prospex Energy reports progress at Selva Malvezzi

3rd May 2024 11:02

(Sharecast News) - Prospex Energy updated the market on the Selva Malvezzi production concession in Italy on Friday, following a first-quarter activity report from Po Valley Energy (PVE).

The concession's operator, Po Valley Operations (PVO), a wholly owned subsidiary of PVE, holds a 63% working interest, with Prospex holding the remaining 37% working interest.

Throughout the first quarter, the Podere Maiar-1 well at Selva (PM-1) maintained consistent performance, with an average daily production of around 80,000 standard cubic metres.

The AIM-traded firm said a standard slickline operation in March confirmed strong pressure build-up, affirming the sustained production rate.

It said PM-1 was currently supplying gas to BP Gas Marketing under an 18-month offtake agreement, with a weighted average gas sales price of 30 euro cents per standard cubic metre for the quarter.

Gross quarterly production reached 6,385,255 standard cubic metres of gas, with 2,362,544 standard cubic metres net to Prospex, generating €1,906,891 in gross revenue, of which €705,549 was net to Prospex.

The operator was advancing the permitting process with regulatory authorities for other projects within the concession.

Additionally, after successfully reprocessing existing 2D seismic lines, the joint venture was considering a new seismic acquisition programme to optimise drilling programmes for identified contingent resources at Selva North, Selva South, and the East Selva and Riccardina prospects.

Gas production at the PM-1 facility in the Selva Malvezzi Production Concession remained consistent throughout the quarter, averaging between 78,000 and 80,000 standard cubic metres per day, except during slickline operations.

Three slickline operations were conducted during the quarter, with results confirming expected bottom hole pressure and temperature readings.

Ongoing monitoring ensured no accumulation issues were present.

"Po Valley Energy continues with safe and reliable operations at the Selva Malvezzi production concession," said chief executive officer Mark Routh.

"We are actively advancing the necessary activities to facilitate development drilling programmes at Selva Malvezzi with the target of converting the contingent resources at Selva North and Selva South and the prospective resources at East Selva and Riccardina into proved, developed and producing reserves in the near term."

At 1055 BST, shares in Prospex Energy were down 1.12% at 5.74p.

Reporting by Josh White for Sharecast.com.