(Alliance News) - Prospex Energy PLC on Wednesday said it had received final approval to begin development at the Podere Gallina licence in northern Italy.

The investor in onshore European gas and power projects has a 37% working interest in the Podere Gallina licence, in which the Selva gas field is located. The operator, Po Valley Energy Ltd, holds the remaining 63%.

Prospex said final approval to commence development activity was received on Monday. It said Podere Maiar remains on track for first gas in the second quarter of 2023.

Works to prepare the tie-in to the Snam SPA gas grid network started on November 19. Snam is an Italian energy infrastructure company. Gas plant construction work and pipeline installation work is due to commence on November 28.

It said Po Valley is "in dialogue" with off-take partners for the sale of gas from Podere Maiar.

Bids to take delivery of gas at the SNAM connection point to the national grid are being evaluated and a joint marketing agreement will be drawn up to facilitate joint sales.

Chief Executive Officer Mark Routh said: "We are extremely pleased that Po Valley has confirmed that final permissions have been granted to start the development works on site and that Podere Maiar remains on schedule and on budget to achieve first gas early in the second quarter of 2023.

"Initial conversations with gas off-take partners for the sale of gas have commenced, which we have decided to sell jointly with the Operator Po Valley under a joint marketing agreement, which we believe will optimise the value of our gas sales and provide better value for our shareholders," he continued.

Shares in Prospex Energy closed 7.3% higher at 11.00 pence each in London on Wednesday.

By Chris Dorrell; chrisdorrell@alliancenews.com

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