Prospex Energy plc / Index: AIM / Epic: PXEN / Sector: Oil and Gas

2 May 2025

Prospex Energy plc

("Prospex" or the "Company")

Italy: Selva Malvezzi Production Concession

Q1 2025 Activity Report

Steady Gross Production and Revenues

Prospex Energy plc (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to provide an update from the Selva Malvezzi production concession in Italy following the publication by Po Valley Energy Limited ("PVE") (ASX: PVE) of its Q1‑2025 activity report.  Po Valley Operations Pty Limited ("PVO"), a wholly owned subsidiary of PVE is the operator of the Selva Malvezzi production concession, which has a 63% working interest, while Prospex has the remaining 37% working interest.

Gas production and revenues from PM-1 gas facility in the Selva Malvezzi Production Concession

Highlights

·    Steady gas production from the Podere Maiar-1 well at Selva ("PM 1") for the quarter averaging 77,292 scm/d continuing to meet predicted levels of production.

·    Robust gas prices with the average weighted gas sales price for the quarter at €0.50/scm due to strong market conditions.

·    Gross quarterly production of 6.724 MMscm of gas (Q4‑2024: 7.323 MMscm), with 2.488 MMscm net to Prospex (Q4‑2024: 2.709 MMscm).

·    Gross revenue for the quarter of €3.338 million (Q4‑2024: €3.38 million), with €1.235 million net to Prospex (Q4‑2024: €1.25 million)

·    PM-1 continues to sell gas to BP Gas Marketing.

Broader Selva Development Program - Multi-well drilling program and 3D geophysical survey

·    Drilling applications for four new wells in the Selva Malvezzi production concession and Environmental Impact Studies were submitted in 2024 with relevant departments.  The operator awaits the outcome of these and expects further interaction with the relevant departments within the Ministry will be required as is standard in these processes.

·    Preparation for the 3D geophysical survey acquisition on the Selva Malvezzi Production Concession progressed during the quarter.  Regional INTESA approval to commence work was received during the period along with final authorisation from MASE for the geophysical campaign , which was received post quarter end.

·    Field activities including the seismic acquisition and campaign are planned for the end of September, beginning of October 2025 as per guidance received from the landowners and relevant Farmer's associations to accommodate the late summer harvest.

Mark Routh, Prospex's CEO, commented:

"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.

"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.  This survey will 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."

* * ENDS * *

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

For further information visit www.prospex.energy or contact the following:

Notes

Prospex Energy plc is an AIM quoted investment company focused on high impact onshore and shallow offshore European opportunities with short timelines to production.  The Company's strategy is to acquire undervalued projects with multiple, tangible value trigger points that can be realised within 12 months of acquisition and then applying low-cost re-evaluation techniques to identify and de-risk prospects.  The Company will rapidly scale up gas production in the short term to generate internal revenues that can then be deployed to develop the asset base and increase production further.

About Selva:

The Selva Malvezzi Production Concession is in the Po Valley region of northern Italy.  The concession contains the Selva gas-field, which produces from the Podere Maiar-1 well, as well as exciting exploration and development opportunities.  The Podere Maiar-1 well at Selva was completed in December 2017 and successfully found a commercial gas accumulation up-dip of the previous wells on the Selva field.  The Company has a 37% working interest in the Production Concession held via Prospex's two wholly owned subsidiaries, PXOG Marshall Ltd (17% of the Licence) and UOG Italia Srl (20% of the Licence).

The Selva Malvezzi Production Concession holds independently verified 2P gross proven reserves of 13.4 Bcf (5.0 Bcf net to Prospex at 37% WI) in Selva, gross Contingent 2C Resources of 14.1 Bcf (5.2 Bcf net) and a further 88.2 Bcf of gross Best Estimate Prospective Resources (un-risked) (32.6 Bcf net).^[1]

The operator has decided to re-name the discoveries and prospects on the concession.  North Selva is to be renamed Casale Guida 1d, South Selva is to be renamed Ronchi 1d, East Selva is to be renamed Selva Malvezzi 1d and Riccardina is to be renamed Bagnarola 1d.

The drilling programmes for the four new drilling projects at Casale Guida 1d (North Selva), Ronchi 1d (South Selva), Selva Malvezzi 1d (East Selva) and Bagnarola 1d (Riccardina) were filed for drilling authorisation to UNMIG department of the Italian Ministry of Environment and Energy Security (MASE) in September 2024.  The Environmental Impact Study for drilling, development and production of the four wells was submitted in December 2024.

An independent Competent Person's Report of the Podere Gallina Licence which was converted into the Selva Malvezzi Production Concession at first gas in July 2023, was prepared by CGG Services (UK) Limited in July 2022 on behalf of the joint venture.^[1] It attributed a total of 379 MMscm (13.4 Bcf) gross 2P reserves for the Selva redevelopment project.

References:

[1] Source: "Competent Person's Report Podere Gallina Licence, Italy" prepared by CGG Services (UK) Limited in July 2022 : https://bit.ly/44VF02A

Qualified Person Signoff

In accordance with the AIM note for Mining and Oil and Gas Companies, the Company discloses that Mark Routh, the CEO and a director of Prospex Energy plc has reviewed the technical information contained herein.  Mark Routh has an MSc in Petroleum Engineering and has been a member of the Society of Petroleum Engineers since 1985.  He has more than 40 years of operating experience in the upstream oil and gas industry.  Mark Routh consents to the inclusion of the information in the form and context in which it appears.

Glossary:

Bcf                            Billion standard cubic feet

Bcm                          Billion standard cubic metres

Boe                           Barrels of Oil Equivalent (where 1 MMBoe = 5.8 Bcf)

MMBoe                     Million Barrels of Oil Equivalent

mcf                           Thousand standard cubic feet

MMscf                      Million standard cubic feet

MMscfd                     Million standard cubic feet per day

MMscm                     Million standard cubic metres

MMscm/d                  Million standard cubic metres per day

MWh                          Mega Watt hour

scm                           Standard cubic metres

scm/d                        Standard cubic metres per day

TTF                           The 'Title Transfer Facility' - a virtual trading point for natural gas in the Netherlands.

Appendix

Figure 1: Selva Malvezzi Production Concession & 3D Seismic Survey Footprint