Italy: Selva Malvezzi Production Concession

Q4 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 Q4-2025 activity report for the period ending 31 December 2025. 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 Podere Maiar-1 ("PM-1") for the quarter confirming production expectations and driving continued strong operating cashflows
• Focus for the next stages of development is the wells at Casale Guida 1d, Ronchi 1d, Selva Malvezzi 1d and Bagnarola 1d
• EIA and development programme for the four new wells is currently being updated to incorporate further progress on Ministry recommendations
• 3D Geophysical survey field activities completed on time and under budget as a result of careful planning and favourable weather
• Work will deliver a high-resolution three-dimensional subsurface model to support future field development planning and potential resource upgrades

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

Mark Routh, Prospex's CEO, commented:

"The Selva Malvezzi concession continues to prove its investment value, with the operator delivering a stable operating and financial result from the PM-1 gas well for the quarter and making solid progress as it looks to expand production through the development of four new wells. The successful completion of a 3D geophysical survey on time and under budget is testament to Po Valley Energy's disciplined work approach and we look forward to receiving the results of this work programme in due course."

Operational Overview

Selva Malvezzi

The Selva Malvezzi Production Concession is an onshore natural gas asset in the eastern Po Plain, Bologna province, Emilia-Romagna Region. Granted in July 2022, the 80.68 sq. km concession was carved out of the former Podere Gallina Exploration Permit and includes the producing Podere Maiar gas field alongside nearby gas prospects of Selva Malvezzi 1d, Casale Guida 1d, Ronchi 1d and Bagnarola 1d.

PM-1 gas production and well management

Total gas production (100%) for Q4 2025 was 6.97 MMscm (2.58 MMscm net to PXEN), generating revenue of €2.3 million for the quarter (€0.85 million net to PXEN). Cumulative gross production since first gas in July 2023 has reached 65.6 MMscm from the C2 level, equating to approximately 95% of the certified P1 reserves reported in the July 2022 CPR.

During the quarter, average daily production remained steady at around 80,000 scm/d, aside from 2 short periods of shutdown for facility maintenance and slick line activities in early October and November 2025. The facility was shut down for 3 days during slick line activities and pressure buildup with the well returning to production at approximately 80,000 scm/d on 5 November 2025.

Gas sales commenced under a new agreement from 1 October 2025, with Hera Trading, part of the Hera S.p.A. group.

Royalty expenses (on gas production sales) are accrued for the quarter at €144,500 (€704,500 year to date). Royalties are payable in Q2-2026 following assessment by relevant authorities in respect of the sales for the year to 31 December 2025.

Summary of gas production at PXEN's 37%-owned Podere Maiar - 1 (PM-1) gas facility in the Selva Malvezzi Production Concession:

3D Geophysical Survey

Po Valley Energy completed the 3D geophysical data acquisition over the Selva Malvezzi concession area. The programme covered approximately 140 sq. km. After laying out 8380 wireless geophones, data acquisition commenced on 13 November 2025 using single sweeps from four Vibro-seis trucks operating simultaneously in separate quadrants. The data acquisition was completed on time and under budget, benefitting from unusually dry weather for November, but its success was driven by extensive planning and outstanding execution by contractors, Geotec for permitting and Geofyzika Torun ("GT") for acquisition & data recording, and PVO technical team.

The data acquired is being collated and prepared by GT for the next data processing phase over the coming months. This work will deliver a high-resolution three-dimensional subsurface model to support future field development planning and potential resource upgrades at Selva Malvezzi. Subsequent interpretation of the data will be done in-house. Po Valley Energy is targeting communication of these results with the market in Q2-2026. The data acquired will be instrumental in fine-tuning the 4 well development programme in this licence.

• 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 are located within the Selva Malvezzi Production Concession. The Environmental Impact Assessment ("EIA") covering the drilling, development, construction and production phases of the four wells filed in December 2024, is under review in order to incorporate recommendations and amendments from the Ministry and also an update of the project which includes the full scope of potential works and impacts (treatment facilities, pipelines, Podere Maiar plant upgrade). The specialist studies requested by the EIA commission are in progress and expected to be submitted to the Ministry in Q2 2026.

* * ENDS * *

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.

Qualified Person Signoff

Appendix

Figure 1: Selva Malvezzi Production Concession