Prospex inks Italy gas sales deal with BP

Prospex Energy has signed an 18-month gas sales agreement with BP Gas Marketing, it announced on Tuesday, for its Podere Maiar-1 production facility in Italy.

The AIM-traded company said that under the agreement, BP would purchase an estimated 37 million standard cubic metres of natural gas, with a supply price linked to Italy's ‘Heren PSV day ahead mid’ price assessment.

It said the contract was set to start on 1 April, with the potential for an extension.

Prospex said its joint venture with Po Valley Operations was fully funded to complete the production facility development, with first gas expected to be delivered early in the second quarter.

“The gas sales agreement with BP Gas Marketing Ltd marks a significant milestone for the company and its joint venture partner Po Valley as we get closer to first gas production from the Selva field development,” said chief executive officer Mark Routh.

“We are delighted that Po Valley has secured the agreement with BP Gas Marketing - a recognisable brand in the industry - to take delivery and sell our gas and look forward to working with them.

“Prospex is selling its share of the gas production jointly with the operator, Po Valley, under a joint marketing agreement, in order to optimise the value of our gas sales.”

At 1627 GMT, shares in Prospex Energy were down 7.63% at 17.55p.

Reporting by Josh White for Sharecast.com.