Prospex Energy PLC (AIM: PXEN), the AIM-quoted investment company focused on European gas and power projects, is pleased to announce that Po Valley Energy Limited (ASX:PVE) ('Po Valley' or the 'Operator') has received approval for the production concession at the Podere Maiar gas field located in the Po Valley onshore in northern Italy, which lies within the Selva Malvezzi production concession ('Selva').  Prospex holds a 37% working interest in the Podere Maiar licence with the Operator holding the remaining 63%.

Highlights

• Production Concession at Selva fully approved by Italy's Ministry of Ecological Transition
• On the assumption that the joint venture parties meet the development costs and secure the necessary contractors to undertake the development work, first gas is anticipated in  H1 of 2023
• Contracts can now be awarded and first payments made to the contractors for the construction of the automated gas plant facilities, the installation of a 1,000 metre four-inch pipeline and the connection to the national gas grid network operated by SNAM
• Prospex will now pay its 37% share of the €757,000 SNAM Bond (€280,090 net to Prospex) necessary to procure the connection to the national gas grid

Mark Routh, Prospex's CEO, commented:
"We are extremely pleased to have received the final approval of the Production Concession from the Italian regulatory authority, the Ministry of Ecological Transition.  This allows work to commence immediately to connect the suspended Podere Maiar-1 well to the adjacent National Gas Grid operated by SNAM.  I acknowledge the hard work and advanced planning by the Operator's team in Italy whose perseverance and professionalism has led to securing this major milestone for both Po Valley and Prospex.

"The development of this indigenous gas field is good for local jobs, boosts the economy of the region and although relatively small, this gas production will go some way towards alleviating the energy and gas supply shortfalls being experienced in Italy and indeed the whole of Europe."

Background

Po Valley was awarded the Selva Malvezzi preliminary gas Production Concession (80.68km2) in 2019 and received the final Environmental Impact Assessment ('EIA') decree issued by the Ministry on 29 March 2021.  The Emilia Romagna Regional Council approved INTESA (local government production agreement) for the Podere Maiar gas field at Selva on 5 June 2022.  Po Valley will now apply to the Ministry for the formal transfer of 37% to Prospex of the quotas in Po Valley's Selva Malvezzi concession.  This legal transfer can only happen after production concession approval and is essentially a formality.  It will not delay field development activity undertaken by the Operator and its contractors.

The Podere Maiar gas field, within the Selva Malvezzi concession, is in a defined "suitable area" under the Plan of Areas ('PiTESAI').  

Based on dynamic reservoir studies, the field development is designed to produce at a maximum rate of up to 150,000 cubic metres/day (5.3 million standard cubic feet per day ('MMscfd')) from successfully tested C1 and C2 production levels in the Medium- Upper Pliocene sands of the Porto Garibaldi Formation.