Prospex Oil and Gas PLC Drilling Plan Approved for Onshore Poland Well (7618Q)
December 02 2016 - 2:01AM
UK Regulatory
TIDMPXOG
RNS Number : 7618Q
Prospex Oil and Gas PLC
02 December 2016
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
2 December 2016
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Drilling Plan Approved for Onshore Poland Well
Prospex Oil and Gas Plc, the AIM quoted investment company, is
pleased to provide an update on its investment in the Kolo Licence
('Kolo' or the 'Licence'), onshore Poland. The well drilling plan
('Plan Ruchu') has been approved by the Polish Mining Authority to
drill the Boleslaw-1 well ('Boleslaw-1' or 'the Well') in the 1,150
sq km Licence. The approval of the plan represents the final
regulatory milestone ahead of drilling Boleslaw-1, which is
targeting gas in an active petroleum system. With well pad
construction currently underway and on schedule, Boleslaw-1 remains
on track to be drilled in December 2016.
The Well will be targeting Boleslaw, a drill ready gas prospect
with two mapped reservoirs that was assigned by AGR TRACS in an
independent Competent Persons' Report ('CPR') a gross best estimate
of 87 bscf and a risked current valuation (net to Prospex) ranging
from US$7.1m to US$12.2m (GBP5.6m and GBP9.7m based on GBP/$ rate
of 1.26 as at 01 December 2016). See announcement of 26 May 2016
for further details. In the CPR, AGR modelled production scenarios
at 3,333-6,666 boe per day from a single well and assigned a Net
Present Value ('NPV') range of between US$44m and US$95m (net to
Prospex) (GBP35m and GBP75m based on GBP/$ rate of 1.26 as at 01
December 2016). Kolo is 100% owned by Strzelecki Energia Sp z.o.o
('Strzelecki'), a wholly owned subsidiary of Hutton Poland Limited
('Hutton') in which Prospex holds a 49% interest.
Prospex non-executive Chairman, Bill Smith, said "With all
regulatory boxes now ticked and preparatory work on the ground well
advanced, the 87bscf gas well at Boleslaw remains on course to be
drilled later this month. While there can be no guarantee of
success, thanks to being assigned an NPV range of between GBP35m
and GBP75m (net to Prospex) by our competent person AGR in May
2016, we nevertheless rate this well a low risk company maker. Our
objective is to build a portfolio of potential company-makers. With
this in mind we are currently evaluating other undervalued projects
in Europe that would benefit from our team's proven expertise in
re-working existing data to identify and map new prospects, which
can then be drilled within short timelines and at low cost. I look
forward to providing further updates on our progress."
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Tel: +44 (0) 203
Plc 586 1009
Katy Mitchell WH Ireland Limited Tel: 0113 394
Nick Prowting WH Ireland Limited 6600
Jay Ashfield WH Ireland Limited
Tel: +44 (0)
207 220 1658
Jon Belliss Beaufort Securities Tel: +44 (0) 207
Limited 382 8300
Lucy Williams Peterhouse Corporate Tel: +44 (0) 207
Charles Goodfellow Finance 469 0932
Eran Zucker Peterhouse Corporate
Finance
Peterhouse Corporate
Finance
Charlotte Heap St Brides Partners Tel: +44 (0) 20
Frank Buhagiar Ltd 7236 1177
St Brides Partners
Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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