Selva field nearing production, says Prospex Energy

Gas and power investor Prospex Energy has successfully completed the final safety checks on the gas facility at the Selva field in the Po Valley region of northern Italy, it announced on Wednesday.

The AIM-traded firm said the milestone was achieved after thorough inspections conducted by UNMIG and the local fire department.

Additionally, the company said it had received formal documentation from the Italian Ministry of Environment and Energy Security (MASE) allowing for the start of production from the Podere Maiar-1 (PM-1) gas facility at the Selva field.

The issue of the final approval documentation by MASE was a significant step forward for Prospex, although before production could officially start, an eight-day period was required to finalise all administrative matters.

During that time, the operator of the Selva Malvezzi production concession, Po Valley Operations, expected the gas production ramp-up at PM-1 to commence in early July.

In preparation for production, a slickline unit had been mobilised to the well site and had already started the necessary activities to enable gas production.

Po Valley Operations, a wholly-owned subsidiary of Po Valley Energy, operates the Selva Malvezzi production concession with a 63% working interest.

Prospex Energy holds the remaining 37% working interest in the project.

“We are very pleased that all necessary approvals for gas production at Podere Maiar - 1 (PM-1) have been successfully obtained,” said chief executive officer Mark Routh.

“Following the completion of thorough safety checks by UNMIG and the Fire Department and the final approvals by the Italian Energy Ministry, we are now poised to begin production from the PM-1 well on the Selva field.”

Routh said regional flooding issues had delayed final approvals and production, but the firm could now say “with confidence” that it would see gas production and cash flow from the asset in the near term.

“It is a credit to our partners at Po Valley Energy and their team on the ground, Po Valley Operations, who have persevered to make today's announcement possible.”

At 1319 BST, shares in Prospex Energy were up 5.03% at 8.14p.

Reporting by Josh White for Sharecast.com.