GCIProspex Energy reports strong Q3 production and revenue growth at Selva gas field, Italy
[Image: Prospex Energy]
() , an investor in European gas and power projects, issued a Q3 activity report on 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 said the PM-1 well continued to perform "consistently", with daily average production for the quarter of 76,910 scm/d. 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. Gross quarterly production was 7.02 MMscm of gas (2.6 MMscm net to ) and gross revenue for Q3 was €2.76m (€1.02m net to ).
Prospex filed 4 new drilling applications with the Italian Ministry of Environment and Energy Security at the end of Q3, with all 4 planned wells located within the Selva Malvezzi concession. said environmental studies for the new wells were "well advanced" and on track for submission in Q4, at which point the regulator will commence formal assessment.
also plans to acquire a 3D geophysical survey on the concession, which was materially advanced during the quarter, including receipt of all environmental approvals. said it will commence the geophysical campaign once final sign-off from the regional authority is received, expected in late November 2024.
View from Vox
Prospex reports continued steady production from the PM-1 gas facility in northern Italy as expected. Average production in Q3 of 76,910 scm/d was in line with the previous quarter after the facility ramped up to nameplate capacity earlier in the year. A routine slick line operation carried out in September 2024 yielded results in line with expectations, confirming average daily production of 80,000 scm/day for the foreseeable future.
The asset continues to deliver robust and rising revenues under its recently extended contract with BP Gas Marketing, underpinned by strong weighted average gas prices in Q3 of €0.39/scm (~€37/MWh), an increase from Q2's €0.34/scm. There is significant upside as 4 more wells on the concession are being rapidly advanced through the permitting process. Likewise, permitting for the 3D seismic survey is progressing at pace, with the acquisition on track for mid-Q4.
Additionally, the recent annulment of Italy's 'Plan of Areas', which had previously limited the extent of hydrocarbon exploration and production, represents further potential upside at Selva and future assets within the country.
remains cash generative, with no debt, and well-positioned for further growth. shares rose 8% on today's Q3 update.
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