LONDON (ShareCast) - (Sharecast News) - Prospex Energy reported stable gas production and robust revenues from the Selva Malvezzi production concession in Italy during the first quarter on Friday, in line with expectations.
The AIM-traded company holds a 37% working interest in the concession, which is operated by Po Valley Operations.

It said gross production from the Podere Maiar-1 (PM-1) well averaged 77,292 standard cubic metres per day, resulting in total gross output of 6.724 million scm for the quarter.

That generated net production of 2.488 million scm to Prospex and revenue of €1.24m, based on an average gas sales price of 50 euro cents per scm.

Production and revenue levels were broadly stable compared with the prior quarter.

All gas produced continued to be sold to BP Gas Marketing under existing offtake arrangements.

Prospex noted that market conditions remained favourable, supporting resilient pricing.

In addition to current production, the broader development programme at Selva progressed during the quarter.

Drilling applications and environmental impact submissions for four new wells were lodged in 2024, and regulatory engagement is ongoing.

Preparations for a 3D geophysical survey also advanced, with key approvals received during the period, including final authorisation from Italy's Ministry for the Environment and Energy Security (MASE) shortly after quarter end.

Seismic acquisition work was scheduled to begin in late September or early October, in coordination with landowners and agricultural stakeholders following the summer harvest.

"I am pleased to report that Po Valley Energy, the operator of our Selva Malvezzi Production Concession, continues to maintain safe and steady gas production and revenues," said chief executive officer Mark Routh.

"The operator continues with the preparatory work to drill four further wells on the concession on which the permit applications are progressing well.

"Also, it is good to have confirmation of the timing of the planned 3D seismic survey to be acquired across the concession in September-October 2025."

Routh said the survey would be acquired, processed and interpreted quickly in order to optimise the subsurface drilling targets of the four new wells.

"The company's investment in the Selva Malvezzi production concession continues to deliver strong value to shareholders."

At 1021 BST, shares in Prospex Energy were up 4.91% at 5.88p.

Reporting by Josh White for Sharecast.com.

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