Prospex Energy PLC announced that construction of the gas plant at the Podere Maiar-1 wellsite of the Selva field in the Po Valley, Italy has been completed. The connection to the gas grid operated by SNAM is also complete allowing the delivery of gas to the market as soon as final operational and safety inspections are complete, which the operator, Po Valley Energy anticipates by the end of May. Po Valley Operations Pty Limited ("PVO"), a wholly owned subsidiary of Po Valley Energy Limited is the Operator of the Selva Malvezzi production concession with 63% ownership interest and Prospex has the remaining 37% working interest.

The completion of SNAM connections and commercial arrangements paves the way for the delivery of PM-1 gas to the SNAM grid in Italy. With these connections and arrangements in place, PM-1 gas can now be delivered under the gas supply agreement, announced on 14 February 2023. Additionally, the successful completion of the SNAM connection and transmission arrangements has resulted in PVO initiating the process for the recovery of the performance bond funds deposited with SNAM.

The amount involved in this recovery process is €757,000 (100% basis), with €280,090 net to Prospex. Construction and grid connection has been largely completed on schedule and budget, with only a 3% cost difference to budgeted expenditure. This amounts to ~€132,000 (100% basis), €48,840 net to Prospex.

Given the global supply chain concerns the joint venture is delighted with this outcome. Initial production of PM-1 gas is contingent on the signoff of the final operation and safety inspection. PVO anticipates that this will occur before the end of May 2023.