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(Sharecast News) - Prospex Energy said on Thursday that its Selva Malvezzi joint venture in Italy has signed a new gas sales agreement with Hera Trading to supply gas from its Podere Maiar-1d well, replacing its existing contract with BP Gas Marketing when it expires in October 2025.
The AIM-traded firm said the 12-month agreement, set to start on 1 October, would see the joint venture supply about 27.96 million standard cubic metres of gas to Hera Trading, with pricing linked to the Italian Gas Index (IG Index GME).
It said the deal included an option to extend.
Hera Trading, part of the FTSE MIB-listed Hera Group, operates from Bologna in the Emilia Romagna region and was selected through a competitive tender process.
The operator, Po Valley Operations, holds a 63% stake in the Selva Malvezzi project, while Prospex's subsidiaries own a combined 37%.
"We are pleased that Po Valley has secured a new gas sales agreement with Hera Group, a respected energy company with operational headquarters in the Bologna area," said Mark Routh, Prospex's chief executive.
"This is a significant engagement for both Po Valley and Prospex, strengthening the Joint Venture's relationship with the region and demonstrating its commitment to supply locally sourced energy to the community."
He added that the Italian Gas Index "trades at a premium to the Dutch TTF gas price, so we expect the Selva Malvezzi asset will continue to achieve a premium for its gas sales."
The joint venture had produced about 54.4 million standard cubic metres of gas from the Podere Maiar-1d well since first gas in July 2023.
At 0940 BST, shares in Prospex Energy were up 1.3% at 4.66p.
Reporting by Josh White for Sharecast.com.
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