Prospex Energy (PXEN) , an investor in European gas and power projects, noted an operational update from its Podere Maiar-1 (PM-1) gas facility at Selva field, Italy by operator Po Valley. Prospex has a 37% interest in Selva and Po Valley has the remaining 63%.
After 6 months of gas production, operator Po Valley has confirmed that the well is performing as expected. After a commissioning and testing period at various production levels, Po Valley has defined optimal well performance for PM-1. Slick line work programmes have also been completed to monitor well behaviour and any accumulation of debris.
Po Valley said production volumes testing will continue over the next 4 weeks at 78,000-80,000 scm/d to be followed by another slick line operation programme before a long-term flow rate is set. This confirmatory period allows the Po Valley team to determine the optimal flow rate to ensure no debris accumulation and to establish the most efficient long-term production rate.
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Work is continuing to fine-tune production at Prospex's PM-1 gas facility at Selva field, which was commissioned in August 2023. Operator Po Valley is continuing with monitoring and maintenance of the well to ensure stable production and a reliable income stream from the asset.
In October, Po Valley reported production at PM-1 running at 62,000 scm/d, in line with the earlier outlined testing programme. The facility has now ramped up to ~80,000 scm/d following the initial testing period, with additional monitoring being carried out before a long-term flow rate is set at the most efficient level. Gross quarterly production in Q3 was reported at 5,658,117 scm (2,093,503 scm net to PXEN) sold to BP Gas Marketing, with gross revenue for the quarter of €1.94m (€717k net to PXEN).
Further upside potential at the Selva concession is also advancing, with operator Po Valley progressing agreements with local landowners and the permitting process with regulatory authorities in order to deliver planned drilling programmes at Selva North, South, and East. Production income from PM-1 will help fund development drilling for Selva North and Selva South, and to convert prospective resources at Selva East into proved, developed and producing reserves in the near term.
PXEN shares gained 3% on the news.
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