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Prospex Energy reports 91% annual revenue surge at Selva amid rising gas prices

09:52, 31st January 2025
Victor Parker
Vox Newswire
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[Image: Prospex Energy]

Prospex Energy (PXENFollow | PXEN, an investor in European gas and power projects, issued a Q4 activity report from its Podere Maiar-1 (PM-1) gas facility at Selva field, northern Italy. Prospex has a 37% working interest in Selva and operator Po Valley has the remaining 63%.

Prospex reported continued steady gas production from the PM-1 well, in line with expectations. Production in Q4 averaged approximately 80,000 scm/d. Gas prices continued to strengthen during the quarter supporting revenues, with an average weighted gas sales price at €0.46/scm (€44/MWh) in Q4, an 18% increase on the previous quarter.

Gross quarterly gas production from PM-1 was 7.323 MMscm, up from 4.180 MMscm in Q4 2023. 2.71 MMscm was net to Prospex, up from 1.547 MMscm in Q4 2023. The resulting gross revenue for the quarter was €3.38m, up from €1.77m in Q4 2023. €1.25m was net to Prospex, a 23% increase on the previous quarter, and a 91% increase on Q4 2023.

PM-1 continues to sell the gas to BP Gas Marketing under a 12-month continuation of an offtake agreement originally signed in February 2023.

Prospex plans to drill 4 new wells on the Selva Malvezzi concession to build on the success of PM-1. Drilling applications were submitted in Q3 2024 to Italy's Ministry of Environment and Energy Security. Environmental impact studies were also submitted to the ministry in December 2024.

Mark Routh, Prospex's CEO, commenting: "I am very pleased to report that Po Valley Energy, the operator of our Selva Malvezzi Production Concession continues to maintain, safe, reliable and efficient operations, ensuring consistent and increasing income. Gas prices in Europe remain strong with revenues accumulating well which will facilitate the funding of future development and drilling campaigns."

 

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Prospex reports continued steady production from the PM-1 gas facility in northern Italy, in line with expectations. Average production in Q4 was the nameplate 80,000 scm/d, in line with the previous quarter after the facility ramped up to nominal capacity earlier in 2024. The asset now provides a steady income stream for PXEN, with revenues up 91% on the equivalent period in 2023, supported by consistently rising gas prices over the past year.

PXEN's Selva concession holds significant upside as 4 more wells are being rapidly advanced through the permitting process. To support development of the wells, PXEN will carry out a 3D seismic campaign covering Selva, to begin imminently and conclude within 3-4 weeks. The resulting dataset will be processed early in H1 2025 to refine the drilling targets for the wells. Two will be development wells and two will be exploration wells, targeting contingent and prospective resources respectively.

The 4 new wells are expected to receive drill permits in H2 2025, targeting a total of 88 Bcf gross (33 Bcf net to PXEN). Funding for the 3D seismic campaign is fully covered from PXEN's accumulated production revenues from PM-1. We expect production from the new wells to commence within a year.

PXEN remains cash generative, with no debt, and well-positioned for further growth.

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