Italy Selva Malvezzi - Q1 2026 Activity Report

Q1 2026 Activity Report

Consistent production and strong cashflow from Podere Maiar-1

Prospex Energy plc (AIM: PXEN), the AIM quoted investing 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 ("PVE") (ASX: PVE) of its Q1‑2026 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.

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

Highlights

• Stable production performance from the Podere Maiar-1 (PM-1) well throughout the quarter, in line with expectations, supporting continued strong operating cashflows.
• Progress made on Environmental Impact Assessment (EIA) updates and development planning for the Casale Guida-1d, Ronchi-1d, Bagnarola-1d, and Selva Malvezzi-1d wells, incorporating feedback from the Ministry.
• Completion of the 3D geophysical survey, with data currently undergoing processing by Schlumberger Italy for delivery of a final 3D seismic volume for in-house interpretation

Tom Reynolds, Prospex's CEO, commented:

"The consistent production and strong cash flow from Podere Maiar-1 is very welcome and underpins activity across Prospex wider portfolio of assets on which we expect to provide a short quarterly update in due course.

"European gas prices have been elevated in the period, influenced by geopolitical tensions in the Middle East, underlining the need for secure, domestically sourced energy. With operations and exposure across key markets including Italy, Spain and Poland, the Company is well positioned to benefit from this supportive pricing environment while continuing to build value through its diversified European presence."

Podere Maiar-1 (PM-1) Production

Production performance remained consistent during the quarter:

• Gross gas production totalled 7.26 million scm, generating €3.1 million (gross) in revenue.
• Net production attributable to Prospex at 37% was 2.69 million scm and €1.16m in revenue.
• Average daily production was approximately 80,000 scm/day, with only minimal downtime for scheduled maintenance in January.

Cumulative production since commencement has reached 72.9 million scm (gross), exceeding the certified P1 reserves outlined in the July 2022 CPR.

The average realised gas price for the quarter was €0.43/scm. Prices strengthened toward the end of the period, reflecting tightening global energy markets and heightened geopolitical risk associated with the conflict in Iran.

Royalty expenses of €116k were accrued during the quarter, with payments scheduled annually in arrears (next payment due Q2 2026).

Broader Selva Development Programme

• The Operator continues to progress development planning for four key wells within the concession:

o Casale Guida-1d (Selva North)

o Ronchi-1d (South Selva)

o Selva Malvezzi-1d (East Selva)

o Bagnarola-1d (Riccardina)

• The EIA submitted in December 2024 is currently being updated to incorporate Ministry feedback and expanded project scope, including facilities, pipelines, and upgrades to the Podere Maiar field. Specialist studies requested by the EIA Commission are ongoing and are expected to be submitted in Q2 2026.

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Glossary:

Bcf Billion standard cubic feet

Bcm Billion standard cubic metres

Boe Barrels of Oil Equivalent (where 1 MMBoe = 5.8 Bcf)

EIA Environmental Impact Assessment

MMBoe Million Barrels of Oil Equivalent

mcf Thousand standard cubic feet

MMscf Million standard cubic feet

MMscfd Million standard cubic feet per day

MMscm Million standard cubic metres

MMscm/d Million standard cubic metres per day

MWh Mega Watt hour

scm Standard cubic metres

scm/d Standard cubic metres per day

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