LONDON: Prospex Energy plc (AIM: PXEN) said Thursday that its joint venture operating the Selva Malvezzi gas concession in northern Italy has signed a new 12-month gas sales agreement with Hera Trading S.r.l., a subsidiary of multi-utility giant Hera Group.
The agreement, effective Oct. 1, 2025, will replace the current contract with BP Gas Marketing Ltd and covers the supply of approximately 27.963 million standard cubic meters of gas from the Podere Maiar-1d well. The pricing will be linked to the Italian Gas Index (IG Index GME), which typically trades at a premium to the Dutch TTF benchmark.
Po Valley Operations Pty Ltd (PVO), a wholly owned subsidiary of Po Valley Energy Ltd (ASX: PVE), operates the Selva Malvezzi concession and holds a 63% interest. Prospex’s subsidiaries PXOG Marshall Ltd and UOG Italia Srl hold 17% and 20%, respectively.
The new agreement follows a competitive tender process, with Bologna-based Hera Trading emerging as the preferred bidder. Hera Group is listed on the FTSE MIB index and is one of Italy’s largest energy and utility providers.
Since first gas in July 2023, the Podere Maiar-1d well has produced approximately 54.4 million standard cubic meters of gas from the C2 level. The joint venture’s partnership with BP Gas Marketing will conclude on Oct. 1, 2025, after more than two years of successful collaboration.
“This is a significant engagement for both Po Valley and Prospex,” said Prospex CEO Mark Routh. “It strengthens our relationship with the region and reinforces our commitment to supplying locally sourced energy to the community.”
Routh added that the IG Index GME’s premium pricing is expected to support continued strong returns from the Selva Malvezzi asset.