TIDMPXEN
RNS Number : 5680C
Prospex Energy PLC
23 February 2022
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
23 February 2022
Prospex Energy PLC
('Prospex' or the 'Company')
Result of the General Meeting, Equity Issue and TVR
Prospex Energy PLC, the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that both
resolutions at today's General Meeting were passed.
As a result, a total of 70,137,143 new Ordinary Shares will be
issued pursuant to the Placing, Subscription and the Broker Option
announced on 9 February 2022, which will raise GBP2.455 million
before costs.
Admission to Trading
The Company has applied to the London Stock Exchange for
admission of 70,137,143 new Ordinary Shares to trading on AIM
('Admission'). Admission is expected to occur on or around 24
February 2022. On 23 February 2022 there are 177,310,283 Ordinary
Shares in issue and 7,361 shares held in Treasury. Following
Admission, there will be 247,447,426 Ordinary Shares in issue.
Deducting the 7,361 held in Treasury there will accordingly be
247,440,065 Ordinary Shares that may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in the Company under the FCA's Disclosure and Transparency
Rules.
Use of Funds
Proceeds of the fundraising will be used to:
-- acquire 20% of the Selva Malvezzi Field in Italy, more than
doubling the company's current holding from 17% to 37%, estimated
to add 2.7 billion cubic feet ("Bcf") of 2P gas reserves to
Prospex's portfolio. This proposed acquisition was announced on 10
August 2021 which is expected to complete in April 2022.
-- Fund the development costs of the Selva project to first gas expected in Q1 2023
The Italian Ministry of Ecological Transition has informed the
operator of the Podere Gallina licence that subject to the final
consultation with the local regulators and stakeholders, the
production concession can be awarded. This process is expected to
complete in May 2022.
Mark Routh, Prospex's CEO, commented:
"Following this Placing, Subscription and Broker Option, which
has brought us to a total of GBP2.455 million, Prospex is now in a
strong position to realise our near-term growth objectives;
specifically, the completion of the acquisition of the 20% working
interest in the Selva Malvezzi field in Italy in April 2022. With
the news that the Italian authorities are in the final stages of
approving the production concession hopefully by May 2022, we can
now progress to the development phase on the asset with first gas
still targeted by Q1 2023."
"Additionally, our work on the infill well drilling campaign on
the El Romeral concession in Spain continues to offer considerable
upside to shareholders and we are currently waiting on permits to
drill the first three infill wells. As shareholders will be aware,
the first two wells to be drilled on two proven gas-bearing
structures are expected to bring the generation utilisation of the
plant up to full capacity."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
* * ENDS * *
For further information visit www.prospex.energy or contact the
following:
Mark Routh Prospex Energy PLC Tel: +44 (0) 20 7236
1177
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
Duncan Vasey Peterhouse Capital Tel: +44 (0) 20 7220
Lucy Williams Limited 9797
Susie Geliher St Brides Partners Tel: +44 (0) 20 7236
Ana Ribeiro Ltd 1177
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. The Company will rapidly scale up gas production
in the short term to generate internal revenues that can then be
deployed to develop the asset base and increase production
further.
About Selva:
The Podere Gallina Licence is in the Po Valley region of Italy
in the province of Bologna and covers an area of 506 square
kilometres. The licence contains the currently shut--in Selva
Malvezzi gas-field as well as exciting exploration opportunities.
The Podere Maiar-1 well was completed in December 2017 and
successfully found a commercial gas accumulation up-dip of the
previous wells on the Selva field. The well is suspended and is
awaiting permissions to connect it to the local gas grid for gas
export. The Company currently has as 17% working interest in the
Podere Gallina licence. The Company announced on 10 August 2021 the
conditional acquisition of a further 20% of the Podere Gallina
licence from UOG. Subject to securing funding, Prospex is set to
increase its working interest to 37% in Q2 2022.
Subject to the award of the Production Concession by the Italian
authorities, expected in May 2022, first gas is targeted for Q1
2023.
The Podere Gallina Licence holds independently verified 2P gross
reserves of 13.4 Bcf (5.0 Bcf net to Prospex at 37% WI), gross
Contingent 2C Resources of 14.1 Bcf (5.2 Bcf net) and a further
91.5 Bcf of gross Best Estimate Prospective Resources (33.9 Bcf
net).
( Source : CGG Services (UK) Limited Competent Persons Report -
January 2019 https://bit.ly/3nZNfYf ).
About El Romeral and Tarba
The El Romeral gas and power project in Spain, with gas
production wells supplying gas to an 8.1MW power plant near Carmona
in Southern Spain is owned and operated by Tarba Energía ("Tarba").
Prospex owns a 49.9% working interest in the El Romeral project via
Tarba. Tarba sells electricity generated from the plant on the spot
market in Spain. Current spot market prices have reached all-time
highs in recent months.
Prospex also owns a 15% working interest in the large scale
Tesorillo gas project in southern Spain, which has the potential to
hold gross un-risked Prospective Resources of 831 Bcf of gas (Best
Estimate), with upside in excess of 2 Tcf.
The Tesorillo permit is temporarily suspended, awaiting Ministry
resolution and reinstatement as production licence. The Tesorillo
permit contains the Almarchal-1 gas discovery well (drilled in
1957) which logged 212m of net gas pay. Multiple drill stem tests
flowed gas to surface.
Operated by Tarba (85% Warrego Energy (ASX:WGO) and 15%
Prospex). Prospex has an option to increase to 49.9% for
EUR1,725,000 ahead of drilling a well.
The updated Corporate Presentation for Q1-2022 is available on
the Company's website at https://bit.ly/3G6JtCm .
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END
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