Po Valley Energy Limited has received the penultimate approval for production at the Podere Maiar gas field in onshore northern Italy, which is part of the Selva Malvezzi Production Concession ('Selva'), according to Prospex Energy PLC, the AIM quoted investment company focused on European gas and power projects. The Operator owns the remaining 63 percent of the Podere Gallina Exploration Permit, with Prospex retaining a 37 percent operating interest.
· Emilia Romagna Regional Council approves INTESA (local government production agreement) for the Podere Maiar gas field at Selva
· INTESA is a prerequisite for Italy's Ecological Transition Ministry ('MiTE') to grant a Final Production Concession at Podere Maiar
· Final Production Concession will allow Po Valley to install gas plant and a 1km pipeline - contract negotiations are underway to complete this
· The Company expects first gas from Podere Maiar in the first half of 2023, subject to final approval
Mark Routh, Prospex's CEO, commented:
"We are extremely pleased that the regional authorities have approved the INTESA having received no objections from the local authorities to proceed with the gas development. This marks an important step in progressing Podere Maiar towards production.
"This approval from the Emilia Romagna regional council has taken some time to achieve and we are pleased to now be moving towards the Final Production Concession alongside our partners, Po Valley, so that we can stay on track for our goal of first gas from Podere Maiar next year."
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 Podere Maiar gas field, within Selva, is in a defined "suitable area" under the Plan of Areas (PiTESAI). Granting of the INTESA opens the way for the anticipated grant of the Final Production Concession by the Ministry. This will allow Po Valley to proceed with installing a fully automated gas plant at the existing Selva/Podere Maiar 1dir well site and a 1,000m (1km) pipeline to the adjacent National Gas Grid, where the regulator SNAM can connect the pipeline to the grid.
Po Valley has commenced negotiating contracts to complete this construction in a timely manner, with anticipated first gas from Podere Maiar in the first half of CY2023. 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. (Refer to Po Valley (ASX:PVE) ASX release dated 29 May 2018)
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR.