Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas
26 October 2021
Prospex Energy PLC
Update on the Selva Field Development in
Prospex Energy PLC, ('Prospex' or the 'Company') the AIM quoted investment company (AIM:PXEN) focused on European gas and power projects, provides an update on the Selva field development project in
Schedule and capital expenditure update.
Po Valley Energy, the operator of the Podere Gallina licence in
Following a review of the tie-in execution plan with pipeline operator SNAM, the operator has been informed that the estimated time to complete the tie-in would delay first gas to 1H 2023. The tie-in to the gas grid can only be done by SNAM in accordance with the Italian gas network code and the delay is, in part, as a result of supply chain disruption due to COVID-19 impacts. Po Valley Energy also advises that there is an increased cost estimate of approximately 15% for related materials, namely steel, which is likely to result in an increase in the gross development capex for the Selva Gas field from
Regulatory approvals
The Ministry has confirmed the Selva production concession is progressing and it is expected that the INTESA (the agreement) for Selva to be approved is on schedule by the Regional Government in 4Q 2021 and that the full production concession is expected to be granted in 1Q 2022.
Environmental Monitoring
Initial GPS monitoring began in June 2020 and this programme will be continued jointly with seismic and subsidence monitoring programmes. The first 12 months of full monitoring will be completed by December 2022.
Mark Routh Prospex's CEO commented:
"It is disappointing that the revised schedule for the tie-in works for our 4-inch pipeline to the national gas grid will delay the delivery of first gas from this project at a time when
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of
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For further information visit www.prospex.energy or contact the following:
Mark Routh |
Prospex Energy PLC |
Tel: +44 (0) 20 7236 1177 |
Rory Murphy |
Strand Hanson Limited
|
Tel: +44 (0) 20 7409 3494 |
Colin Rowbury |
Novum Securities Limited |
Tel: +44 (0) 20 7399 9427 |
Duncan Vasey |
Peterhouse Capital Limited |
Tel: +44 (0) 20 7220 9797 |
Susie Geliher |
St Brides Partners Ltd
|
Tel: +44 (0) 20 7236 1177 |
Notes
About Selva:
The Podere Gallina Licence is in the Po Valley region of
The Company announced on 10 August 2021 the conditional acquisition of a further 20% of the Podere Gallina licence from AIM quoted United Oil and Gas plc (AIM:UOG) ("UOG") and UOG Holdings plc (a wholly owned subsidiary of UOG) by way of a corporate transaction of 100% of UOG Italia S.r.l. ("UOG Italia") which has a 20% working interest in the Podere Gallina licence which contains the Selva Gas Field. UOG Italia is a wholly owned subsidiary of UOG Holdings plc.
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