Shares in Prospex Energy PLC (AIM:PXEN) moved on the front foot in Wednesday’s early deals, as it secured approval in Italy to take the Podere Maiar – 1 well, at the Selva gas field, into production.
The company, in a statement, said that final safety checks on the gas facility at the Selva field in the Po Valley region of northern Italy have been successfully completed and the authorities have issued the formal documentation, enabling the commencement of production.
There will be a mandatory eight-day period required to finalise all administrative matters before production can begin.
Prospex anticipates production will get underway and start a phase of ramping up from early July.
"We are very pleased that all necessary approvals for gas production at Podere Maiar - 1 (PM-1) have been successfully obtained,” said chief executive Mark Routh.
He added: "Regional flooding issues have delayed final approvals and production, but we can now say with confidence that we shall see gas production and cash flow from the asset in the near term.”
In London, Prospex shares were up just over 8%, changing hands at 8.4p each valuing the small-cap firm at £24mln.
Prospex holds a 37% interest in the Selva field.