Italy: Selva Malvezzi - Q3 2025 Activity Report

Q3 2025 Activity Report

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 ("Po Valley Energy") (ASX: PVE) of its Q3-2025 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.

Highlights

• Consistent well performance from the Podere Maiar-1 well ("PM-1") for the quarter meeting production expectations and driving continued strong operating cashflows.
• Transition to a new offtake agreement with a new supply contract commencing 1 October 2025 with Hera Trading.
• Updated EIA and development program for Casale Guida-1d, Ronchi-1d, Bagnarola-1d, and Selva Malvezzi-1d, incorporating further progress on ministry recommendations.
• Field activities scheduled for Q4-2025 for the 3D geophysical survey for the Broader Selva Concession Development Program, with permitting processes and landowner agreements near completion.

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

Mark Routh, Prospex's CEO, commented:

"I am very pleased to report that Po Valley Energy, the operator of the Selva Malvezzi Production Concession, continues to deliver steady and reliable gas production from the PM-1 well with the related ongoing cash generation with consistent production averaging ~80,000 scm per day during the period.

Meanwhile, the operator has continued to make progress on the permitting front, with EIA and development programme revisions underway for the proposed 4 new wells and the upcoming 3D geophysical survey in December."

Operational Overview

Selva Malvezzi

Selva is an onshore natural gas field located in the eastern part of the Po Plain, in the Bologna province of the Emilia Romagna Region. Awarded in July 2022, the Selva Malvezzi Production Concession covers 80.68km2 carved out from the former Podere Gallina Exploration Permit.

It includes the Podere Maiar Gas field (in production) and the gas prospects Selva Malvezzi (East Selva), Casale Guida (Selva North), Ronchi (Selva South) and Bagnarola (Riccardina).

PM-1 gas production and well management

Total production (100%) in Q3 2025 was 7,249,134 scm, generating revenue of €2,681,549 (100%) for the quarter. Total gas production (100%) since initial flow now stands at 58,633,799 scm from the C2 level, representing ~84% of the total (100%) P1 reserves of C2 Level certified in the July 2022 CPR[1] (PXEN share of the gross amounts quoted above is 37% of total).

Daily production was consistent at ~80,000scm/day, with the exception of the final days in September with a routine alumina replacement at the gas plant undertaken. The well re-opened on 2 October 2025 with production resuming at ~80,000 scm/day.

The quarter has seen the conclusion of the Gas Sales Agreement with BP Gas Marketing, with final production supplied at the end of September. From 1 October 2025, gas is supplied under the new Gas Sales Agreement with Hera Trading, a group entity headed by Hera S.p.A. (refer RNS announcement RNS: 21 August 2025).

Net government royalties for the quarter of €99k (€329k year to date) on the production gas sales are accrued and would be due for payment in Q2 of 2026.

• Casale Guida 1d, Ronchi 1d, Bagnarola 1d, Selva Malvezzi 1d wells

The key area of focus for the Joint Venture with the next stages of development is at Casale Guida 1d (Selva North discovery), Ronchi 1d (South Selva discovery), Selva Malvezzi 1d (East Selva prospect) and Bagnarola 1d (Riccardina prospect), all of which lie within the Selva Malvezzi Production Concession.

The drilling programs for the four new drilling projects were submitted to the UNMIG department of the Italian Ministry of Environment and Energy Security (MASE) for drilling authorisation in September 2024 with an Environmental Impact Study (EIA) covering the drilling, development and production phases of the four wells filed in December 2024 reported last quarter. The EIA technical commission of the Ministry (MASE) requested further studies with observations and recommendations to be addressed.

The operator has progressed a new environmental study incorporating recommendations and amendments from the EIA technical commission which include, amongst others, addressing the location of wells to mitigate any flooding concerns for the Selva Malvezzi-1 well site location and addressing visual and noise impact concerns of the Casale Guida and Ronchi well sites.

Field work, including geophysical acquisition, on the approved 3D geophysical survey over the Selva Malvezzi Production concession, is on track to commence in Q4/2025. The permitting process and execution of landowner access agreements were near completion at the end of this quarter; a lengthy process with over 1,800 landowners across the Production Concession area.

Expenditure for the quarter in relation to the above progression of work programs on the Selva prospects was ≈€13k (net to PXEN), with expenditure expected to increase over the next two quarters as the Company implements the 3D geophysical survey and completes the EIA study and drilling programs of the new wells.

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About Selva:

References:

Glossary:

scm Standard cubic metres

scm/d Standard cubic metres per day

MMscm Million standard cubic metres

Bcf Billion standard cubic feet

MMscfd million standard cubic feet per day

MWh Mega Watt hour

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

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Appendix

Figure 1: Selva Malvezzi Production Concession