Source - Alliance News

Prospex Energy PLC on Wednesday said it is supplying more than 5.6 million standard cubic metres per day of gas to BP International Ltd subsidiary BP Gas Marketing Ltd.

Prospex said the gas will be sourced from the Podere Maiar gas facility, also referred to as PM-1, at the Selva field in Italy.

The Europe-focused gas and power project investor owns a 37% working interest in the Selva Malvezzi production concession, while Mount Pleasant, Australia-based Po Valley owns 63%.

Prospex said that as part of an initial testing programme, the PM-1 well has been flowing at daily production levels of around 72,000 standard cubic metres per day.

Meanwhile, October production is running at around 62,000 standard cubic metres per day as part of a testing programme scheduled to conclude in November.

Prospex added it is targeting production rates of at least 80,000 standard cubic metres per day in the longer term.

All PM-1 gas is being sold to BP under an 18-month supply agreement announced earlier this year, in which Prospex estimates 37 million standard cubic metres of natural gas to be supplied to BPGM under the contract, with the gas supply price linked to Italy’s ‘Heren PSV day ahead mid’ price assessment.

Chief Executive Officer Mark Routh said: ‘Delivering the stable production rates and moreover securing the substantial cash flows from the brand-new gas plant at the PM-1 gas facility is a significant achievement by the operator of our Selva Malvezzi production concession, Po Valley Energy.

‘This places Prospex in the enviable position of having stable production and income from two onshore natural gas fields, one in Spain and one in Italy.’

Shares in Prospex fell 3.9% to 6.73 pence each in London on Wednesday afternoon.

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