Prospex Energy (PXEN ) has announced that its Selva Malvezzi Joint Venture has executed a new gas sales agreement with Hera Trading to supply gas from the Podere Maiar-1d facility in Italy. 

The agreement covers approximately 27.963 million standard cubic metres of gas, with an option to extend. Pricing will be linked to the Italian Gas Index (IG INDEX GME), providing transparent index-based realisations. The 12-month contract begins on 1 October 2025 and will replace the current agreement with BP Gas Marketing, which expires the same day.

Operator Po Valley Operations (PVO), a wholly owned subsidiary of ASX-listed Po Valley Energy (ASX: PVE), holds 63% of the Selva Malvezzi production concession under a Joint Operating Agreement. Prospex’s subsidiaries hold 17% via PXOG Marshall and 20% via UOG Italia.

Hera Trading is part of Hera Group, the Bologna-based multi-utility. Hera S.p.A is listed on Borsa Italiana’s FTSE MIB index.

Since first gas on 4 July 2023, Podere Maiar-1d has delivered approximately 54.4 million standard cubic metres from the C2 level. The Hera contract follows a competitive tender, and the operator expects strong support from local stakeholders given Hera’s regional footprint.

“We are pleased that Po Valley has secured a new gas sales agreement with Hera Group, a respected energy company with operational headquarters in the Bologna area. This is a significant engagement for both Po Valley and Prospex, strengthening the Joint Venture’s relationship with the region and demonstrating its commitment to supply locally sourced energy to the community. The agreement with Hera will replace the current GSA with BP Gas Marketing, which expires on 1 October 2025,” said Prospex CEO Mark Routh.

"The publicly quoted Italian Gas Index 'IG Index GME' gas price trades at a premium to the Dutch TTF gas price, so we expect the Selva Malvezzi asset will continue to achieve a premium for its gas sales."

 

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The deal secures continuity of offtake into the next contract year while maintaining exposure to market pricing via the Italian Gas Index. Working with a local counterparty should aid stakeholder relations, and contracted volumes align with recent production, pointing to a steady operational outlook as the Joint Venture transitions from BP to Hera in October 2025.