Prospex Energy (PXEN ), an investor in European gas and power projects, announced that construction of its gas plant at the Podere Maiar-1 (PM-1) wellsite of the Selva field in northern Italy has been completed, including the connection to the SNAM gas grid.
Prospex expects delivery of gas to begin by the end of May 2023 after operator Po Valley Energy has completed all necessary operational and safety inspections. Po Valley holds a 63% interest in Selva field, and Prospex has the remaining 37%.
With the connection to Italian energy company SNAM and transmission arrangements completed, delivery of gas from PM-1 can begin to the the SNAM grid under the supply agreement announced on 14 February 2023. Following finalisation of transmission arrangements, Po Valley has initiated the process of recovering €757k performance bond funds (€280k net to Prospex), previously deposited with SNAM.
Prospex said the gas plant construction and grid connection were completed within schedule and budget, with only a 3% cost difference to budgeted expenditure, amounting to €132k (€48k net to Prospex). This is noteworthy given the current inflationary environment and supply chain issues.
Mark Routh, Prospex's CEO, commented: "I congratulate the team at Po Valley for delivering a safe and very high-quality gas plant development. This has been achieved by PVO and the main contractor, TESI working with the SNAM construction engineers to install the new gas processing plant and the construction and connection to the SNAM operated national grid network. This has in turn triggered the recovery of the performance bond deposited with SNAM worth €280,090 to Prospex."
View from Vox
Big news from Prospex as the company announced its highly anticipated gas plant at Selva field has been completed, including the tie-in connection point to the SNAM grid in Italy.
The PM-1 plant is ready for commissioning, pending final operational and safety inspections. Prospex and operator Po Valley have finalised commercial agreements and expect first gas before the end of May 2023.
The gas plant and its grid connection were completed on schedule and within budgeted contingency, which is a significant achievement given the ongoing supply chain challenges and inflationary pressures facing the energy industry. Investors reacted well to the news, pushing PXEN shares 9% higher in early trading. PXEN shares are up 110% in the past 12 months.
2023 has been a transformational year for Prospex as the company is on the verge of becoming a gas producer in Italy, and is adding 5 MW of solar capacity to its highly profitable El Romeral natural gas power plant in Spain, boosting its production by 60%.
Prospex remains well-funded and well-positioned to serve high European demand for locally produced energy, with the additional revenue stream from Selva field expected to further strengthen its balance sheet.
Investors interested in the energy sector should Prospex Energy.