El Romeral Gas & Power Project Acquisition Update

RNS Number : 6807O

Prospex Energy PLC

11 February 2021

 

Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas

Prospex Energy PLC ('Prospex' or the 'Company')

Update on El Romeral Gas & Power Project Acquisition

Prospex Energy PLC, the AIM quoted investment company focused on European gas and power projects, is pleased to provide the following update on its acquisition (the 'Acquisition') of a 49.9% interest in El Romeral, an integrated gas production and power station operation in southern Spain ('El Romeral' or 'Project').  Prospex is acquiring its interest in the Project, which includes three producing wells that supply gas, through its own network, to a 100% project-owned 8.1 MW power station, via Tarba Energia ('Tarba').  Prospex owns a 49.9% interest in Tarba B shares with its partner Warrego Energy Limited owning the balance. 

As announced on 24 December 2020, Tarba informed its shareholders that final regulatory approval in the form of both Ministerial and Regional authorities sign-off has been received for the transfer of El Romeral to Tarba and that the acquisition could proceed to completion. At the time of the announcement, completion was expected on 31 January 2021.  Tarba has now informed its shareholders that, due to slower than anticipated progress made during the period immediately following the festive period, the Acquisition is now expected to complete on 28 February 2021. 

Tarba, which will assume the day-to-day management and control of El Romeral following completion, is utilising the extended time frame to continue its preparatory work so that the operational transfer will go smoothly. 

The medium-term target at El Romeral is to increase on site gas production and, in turn, electricity generation at the Project's power plant towards its nameplate capacity from the current 22% level.  This is expected to be achieved via the drilling of new wells targeting already identified development locations and very-low risk prospects which have been assigned gross contingent and prospective gas resources of 5Bcf and 90Bcf, respectively.  Tarba will also carry out a review of existing wells to evaluate the potential to undertake workovers to enhance recovery rates. Historically, the power station at El Romeral regularly produced c. 60,000 Mwh per annum when gas was not a limiting factor.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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For further information visit www.prospexoilandgas.com or contact the following:

Edward Dawson	Prospex Energy PLC	Tel: [phone]
Rory Murphy Ritchie Balmer Jack Botros	Strand Hanson Limited	Tel: [phone]
Colin Rowbury Jon Belliss	Novum Securities Limited	Tel: [phone]
Duncan Vasey	Peterhouse Corporate Finance	Tel: [phone]
Frank Buhagiar Cosima Akerman	St Brides Partners Ltd	Tel: [phone]

Notes

Prospex Energy PLC is an AIM quoted investment company focussed on high impact onshore and shallow offshore European opportunities with short timelines to production. The Company's strategy is to acquire undervalued projects with multiple, tangible value trigger points that can be realised within 12 months of acquisition and then applying low cost re-evaluation techniques to identify and de-risk prospects. 

 

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