Prospex Energy (PXEN) , an investor in European gas and power projects, issued an activity report from its Podere Maiar-1 (PM-1) gas facility at Selva field, Italy based on quarterly data by operator Po Valley. Prospex has a 37% interest in Selva and Po Valley has the remaining 63%.
Prospex noted that PM-1 had continued to perform consistently in Q1, with an average daily production of ~80,000 scm/d. A standard slickline operation in March 2024 further confirmed strong pressure build up, validating the average daily production rate for the foreseeable future. The weighted average gas sales price for the quarter was €0.30/scm or c. €29/MWh.
In total, gross quarterly production from PM-1 was 6,385,255 scm of gas (2,362,544 scm net to PXEN), with gross revenue for the quarter of €1.91m (€0.71 net to PXEN). PM-1 is currently supplying gas to BP Gas Marketing under an 18-month offtake agreement.
Mark Routh, Prospex's CEO, commenting: "Po Valley Energy continues with safe and reliable operations at the Selva Malvezzi production concession. 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."
View from Vox
Another positive quarterly update from Selva as Prospex and operator Po Valley note consistent production of ~80,000 scm/d. The asset was first commissioned in August 2023, and following a successful confirmatory period in Q4 2023, favourable test results in January, and another slickline operation in March, it settled at its current efficient flow rate, providing a steady income stream for PXEN.
Overall, production was consistent throughout the quarter within a tight range of 78,000-80,000 scm/d except days on which slickline operations were undertaken. All results from slickline testing were in line with expectations, with ongoing monitoring for any debris undertaken to ensure no accumulation issues.
Selva has further upside as operator Po Valley is advancing agreements with local landowners and permitting 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.
Following a successful reprocessing of existing 2D seismic lines in the production concession, the JV is now evaluating the potential for a new seismic acquisition programme over the licence area in order to optimise drilling programmes of the identified contingent resources at Selva North, South and East, and Riccardina prospects.
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