Prospex Energy (PXEN), an investor in European gas and power projects, announced that its gas plant at the Podere Maiar-1 (PM-1) well site of the Selva field in northern Italy has been cleared for production.
Prospex said the Ministry of the Environment and local fire department have completed final safety checks on the gas facility at Selva Field, while the Italian Energy Ministry and Ministry of Environment and Energy Security (MASE) have issued formal documentation, enabling the commencement of production from PM-1.
MASE requires a mandatory 8-day period to finalise all administrative matters before production can begin. Therefore, operator Po Valley Operations anticipates that gas production at PM-1 will commence in early July 2023. A slickline unit has been dispatched to the well site to prepare the site for production.
Po Valley Operations has a 63% working interest in Selva field while Prospex has the remaining 37% working interest. Hybrid financing has enabled Prospex to fully fund its 37% share to the point of first gas. Prospex has already signed a joint gas sales agreement to offtake and sell gas from Selva field.
In its most recent final results for FY22, Prospex laid out a transformational year ahead. With gas production imminent at Selva, and its El Romeral gas plant in Spain on schedule for several new wells in addition to an adjacent 5MW solar project, the company is at a value inflection point.
The outlook for Prospex remains one of consolidation and growth. A 240% increase in net book value to £16m in FY22 reflects the revaluation of the company's 37% working interest in Selva field, following the acquisition of another 20% interest from UOG. Cash also increased materially to £1.48m from £220k last year. Prospex continues to have significant asset backing relative to its market cap.
Investors continue to cheer on the company, with its share price rising 348% in 2022, and currently up 95% in the past 12 months after some consolidation following normalisation of gas prices.
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