Prospex reports progress at Selva well site

(Sharecast News) - Prospex Energy updated the markets on operations at the Podere Maiar-1 (PM-1) well site in the Selva field on Friday. The AIM-traded firm said the Selva field is operated by Po Valley Operations (PVO), a wholly-owned subsidiary of the ASX-listed Po Valley Energy.

Po Valley Energy holds a 63% working interest in the Selva Malvezzi production concession, while Prospex Energy holds the remaining 37% working interest.

Prospex said PVO reported that the PM-1 well had maintained strong gas production for six consecutive months, aligning with performance expectations.

It said PVO had completed the commissioning and testing period, determining optimal well performance at various production levels.

Slick line work programmes had been carried out to monitor well behaviour and identify any debris accumulation.

Production volume testing would continue over the next four weeks, targeting a range of 78,000 to 80,000 standard cubic metres per day.

Subsequently, another slick line operation programme would be conducted before establishing a long-term flow rate.

The confirmatory period would allow the PVO team to ascertain the optimal flow rate to prevent debris accumulation and optimise long-term production efficiency.

Additionally, a surface sand detector was set to be installed as an added safeguard for the gas plant.

Progress was meanwhile being made towards unlocking further potential within the Selva Malvezzi production concession.

The operator was actively working on agreements with local landowners and advancing the permitting process with regulatory authorities to facilitate drilling programs at Selva North, South, and East.

"The operator of our Selva Malvezzi production concession, Po Valley Energy, is continuing with the diligent monitoring and maintenance of the well performance and production facilities to ensure a safe and reliable income stream from the asset," said chief executive officer Mark Routh.

"Prospex is working together with the Po Valley Energy team and using the production income to progress the necessary activities to secure the development drilling programmes for the contingent resources at Selva North and Selva South and, for the target of converting prospective resources at East Selva into proved, developed and producing reserves in the near term."

At 1207 GMT, shares in Prospex Energy were up 2.36% at 5.63p.

Reporting by Josh White for Sharecast.com.