Italy: Selva Malvezzi Production Concession Update

Italy: Selva Malvezzi Production Concession - Operational Update

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 an update on activities. PVE ASX Announcement-18Nov2025.

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

• 3D seismic survey underway to improve geological understanding across the concession - commenced 13 November 2025 and is expected to be completed by mid-December, weather permitting.
• The acquired data will undergo time-domain volume processing, anticipated to be completed by April 2026, producing a full three-dimensional subsurface model for future development planning.
• Successful routine slickline integrity test completed on well PM-1 on 5 November 2025.

o PM-1 well continues to deliver strong performance from the C2 level, having produced 61 million scm (2.1 bcf) since first gas on 4 July 2023

• New noise reduction barriers installed at the Selva gas processing plant as part of ongoing operational improvement and community engagement initiatives.
• Vegetation screening planted along the perimeter of the PM-1 facility.

Mark Routh, Prospex's CEO, commented:

"I am very pleased to report that Po Valley Energy continues with the sound and efficient operation of the Selva Malvezzi Production Concession. Of particular note is the progress being made on the 3D seismic survey, which started on 13 November 2025. The processed results will optimise the subsurface drilling targets of the four new wells to be drilled on the Selva Malvezzi concession.

"Production from the PM-1 well at Selva continues at a steady and reliable rate of ~80,000 scm/d. Having produced 61 million scm of natural gas since first production on 4 July 2023, the Prospex 37% share of the remaining 1P/2P/3P net reserves in the PM-1 well are 0.8/4.2/10.3 bcf. See Table 1 below for further information."

3D Seismic Survey Progressing Across Selva Malvezzi

The operator reports that Selva Malvezzi 3D Seismic Survey is currently underway with the objective of improving our geological understanding across the concession. Acquisition commenced on 13 November 2025.

Figure 1 - Vibroseis truck on field performing sweep for 3D Seismic Survey

The Joint Venture previously had to rely on legacy 2D seismic data acquired by ENI in the 1970s-1980s. With significant advancements in seismic technology and a broader work program planned for the concession, the operator sought and received authorisation in April 2025 for a full modern 3D seismic acquisition program. Permitting undertaken in September and October 2025 secured agreement from 1,748 landowners across a 140 square kilometre survey area covering the municipalities of Budrio, Molinella, Minerbio, Medicina and Granarolo.

Po Valley has appointed a Polish company Geofizyka Toruń, one of Europe's leading seismic contractors, to conduct fieldwork. A team of 44 specialists is now onsite.

Fieldwork includes:

• Deployment and testing of 8,500 wireless receiver nodes.
• Identification of 5,000 vibration points across the survey area.
• Receiver placement optimised in consultation with municipalities and landowners.
• 95% survey coverage achieved despite minor exclusions (swamp zones, hunting concessions, environmental sensitivity areas, limited non-access parcels).
• Data acquisition, commenced on 13 November 2025, performed by single sweeps from four Vibroseis trucks operating simultaneously in separate quadrants. Recording will occur over 10-14 days across a 3-4-week period, subject to weather conditions.

Figure 2 - Vibroseis truck in field Figures 3 & 4 - Vibroseis trucks and wireless geophones

The project is progressing according to plan with strong cooperation from local municipalities, farmers' associations and landowners.

Field operations are expected to be completed by mid-December, weather permitting.

The acquired data will undergo time-domain volume processing, anticipated to be completed by April 2026, producing a full three-dimensional subsurface model for future development planning.

The operator will provide further updates on the activities as these progress.

Successful Slick Line Test at the Podere Maiar-1 Well ("PM-1")

A routine Slick Line integrity test was completed on 5 November 2025 to assess the condition of the PM-1 well. The contractor temporarily shut the well and ran a probe to check for water or sand ingress and to verify downhole behaviour.

Figure 5 - Slick line operation at PM-1

Key outcomes:

• No water or sand ingress detected.
• The well continues to behave fully in line with expectations.
• The well was safely returned to production and reconnected to the SNAM pipeline.
• Current production rate restored to approximately 80,000 scm/d.

The PM-1 well continues to deliver strong performance from the C2 level, having produced 61 million scm (2.1 bcf) since first gas on 4 July 2023. The C1 level has not been brought onto production. The Selva Malvezzi CPR[1] attributed 1P/2P/3P Reserves net and gross and the attributable remaining reserves in the PM-1 well are shown in the table below.

Table 1 - PM-1 Gross and net CPR and remaining Reserves

This table does not include the Contingent and Prospective gas Resources from elsewhere on the Selva Malvezzi Production Concession.

Noise Reduction Works

As part of ongoing operational improvement and community engagement initiatives, Po Valley has completed a series of noise-reduction upgrades at the PM-1 gas plant. Enhancements carried out include the installation of sound-insulating barriers around the gas compression units, nitrogen tanks and unidirectional valves. These upgrades have significantly reduced plant noise and further strengthened the operator's relationship with neighbouring landowners.

Figures 6 & 7 - Sound barrier installations at the PM-1 Well facility

Vegetation Screening Completed

In response to a request from the Municipality of Budrio (EIA), Po Valley has completed the planting of a new vegetation buffer along the perimeter fence of the PM-1 facility. The planting, undertaken in October 2025 following agronomist advice, comprises six hardy species selected for low-maintenance requirements and year-round resilience.

The vegetation is expected to mature over the next two years, providing an effective natural screen and reducing the plant's overall visual impact.

Figure 8 - Vegetation planting around perimeter of the site

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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 9 -: Selva Malvezzi Production Concession