Prospex holds a 37% economic interest in the Podere Gallina Exploration Permit, with partners Po Valley Energy, the Operator, holding the remaining 63%.
The permit is situated onshore N. Italy, in the prolific Po Valley Basin, with a proven hydrocarbon system where over 5,000 wells have been drilled historically. The block was operated by ENI and produced 83 BCF from 1960 to 1984 and it contains the Selva Malvezzi Gas-Field (‘Selva’) production concession (preliminary awarded). It was assigned by an independent competent person’s report (‘CPR’) conducted by CGG in 2019; 13.4 BCF P50 Reserves at the Selva gas field, Gross Contingent Resources of 14.1 BCF 2C and Gross Prospective Resources of 88.2 BCF Best Estimate. For further details, please read below.
The development of Selva gas field
Selva’s development plan has low CAPEX (net to PXEN €c400,000), the first stage is to bring the Podere Maiar-1 well into production. This will be done in two steps. Firstly, the installation of a fully automated gas plant, at the existing well site, with capacity to produce 150,000 cm/d (5.3 mmscf/day) of gas. Then, the tie-in of a 70bar SNAM pipeline to the National Grid, only 800 m away from Podere Maiar-1 well. There are minimal gas processing requirements, as the Selva gas is very high in methane (99%) and has low liquid content.

The production concession application has received preliminary approval from the Italian Government to develop the Selva Malvezzi gas field, covering an area of 80.8 km2, in January 2019. The formal technical environmental approval for the development of the gas field, has been received in January 2020 from the Italian Ministry of Environment. This approval is a precursor to final sign off by Ministerial decree, the issuing of the required INTESA (intergovernmental agreement) and the final grant of a production concession from Italy’s Economic Development Ministry Production of the 13.3 Bcf (2P) gas reserves is expected to commence in H1 2021. Assuming success with the other prospects within the permit they will tied into production as well in due course.
The Discovery at Podere Mair-1
Podere Maiar-1d well was drilled in Q4 2017 and encountered two gas bearing reservoirs, C1 and C2, in the Mid-Upper Pliocene sands of the Porto Garibaldi Formation. Production testing in January 2018 of C1 and C2, achieved peak flow rates of 148,136scm/d (5.2mmscf/d) and 129,658scm/d (4.6mmscf/d) respectively on an 3/8 inch choke.
Further Prospectivity within the production concession
The Selva production concession has high prospectivity, containing several prospects and leads which have been identified and evaluated. These opportunities are covered in a number of CPRs, the latest dated 2019.
North and South Selva
The CPR demonstrated two new prospects, North and South Selva, that are mapped by the north and south crest of the Selva gas field respectively. The prospects share the same concept as Selva, of an updip stratigraphic pinch-out, but differ in that they target Level A and Level B sands. Levels A and B have been produced at the main Selva gas field in the past, and it is anticipated to encounter comparable reservoir properties. The volumes of the two prospects have been categorised as contingent resources, as the intervals have produced historically, and equate to gross 2C 8.9 BCF for North Selva – Level B with CoS of 70%, and 5.2 BCF for South Selva Level A and B with 60% CoS.
Selva East
Selva East, lies along the same play trend as the nearby Minerbio and Selva fields and has estimated 35 Bcf Best Case Recoverable Prospective Resources, with CoS 40%.
Fondo Perino
Fondo Perino prospect also lies along the same play trend as Minerbio and Selva fields, and has estimated 14.6 Bcf Prospective Resources with 34% CoS.
Riccardina
The Riccardina prospect is situated within the production concessions, at a distance of c. 5 km from the Podere Maiar well. Best Case Prospective Resources are estimated at 38.8 Bcf with 21% CoS.

Reserves & Resources
The CPR, assigned the following reserves and resources:
|
Gross Reserves (BCF) |
Net Reserves (BCF) |
Field |
Proved |
Proved & Probable |
Proved, Probable & Possible |
Proved |
Proved & Probable |
Proved, Probabley & Possible |
Selva |
4.1 |
13.4 |
29.9 |
0.7 |
2.3 |
5.1 |
Total |
|
13.4 |
|
|
2.3 |
|
|
|
Gross (BCF) |
Net (BCF) |
Risk Factor |
Prospect |
|
Low |
Best |
High |
Low |
Best |
High |
(%) |
North Selva – Level B |
Cont. Res. |
3.5 |
8.9 |
17.8 |
0.6 |
1.5 |
3.0 |
70 |
South Selva- Level A |
Cont. Res. |
1.0 |
1.8 |
3.61 |
0.1 |
0.3 |
0.6 |
60 |
South Selva – Level B |
Cont. Res. |
0.9 |
3.4 |
9.3 |
0.1 |
0.6 |
1.6 |
60 |
|
|
|
|
|
|
|
|
|
Total |
Cont. Res. |
|
14.1 |
|
|
2.4 |
|
|
|
|
|
|
|
|
|
|
|
East Selva |
Prosp. Res. |
29.1 |
34.8 |
40.6 |
4.9 |
5.9 |
6.9 |
40 |
Fondo Perino |
Prosp. Res. |
10.2 |
14.6 |
20.5 |
1.7 |
2.5 |
3.5 |
34 |
Riccardina |
Prosp. Res. |
13.0 |
38.8 |
128.9 |
2.2 |
6.6 |
21.9 |
21 |
|
|
|
|
|
|
|
|
|
Total |
Prosp. Res. |
|
88.2 |
|
|
16 |
|
|