Prospex Oil and Gas PLC Update on Bainet-2 Well, Romania (9873D)
July 01 2019 - 3:49AM
UK Regulatory
TIDMPXOG
RNS Number : 9873D
Prospex Oil and Gas PLC
01 July 2019
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
1 July 2019
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Update on Bainet-2 Well, Romania
Prospex Oil and Gas Plc, the AIM quoted investment company, has
been advised by the operator, Raffles Energy S.R.L. ('Raffles'),
that drilling operations at the Bainet-2 well ('Bainet-2' or 'the
Well') in the Exploration Area of the EIV-1 Suceava Concession (the
'Concession' or 'Suceava'), North East Romania, have been
completed. The Well spudded on 25 June 2019 and reached a total
depth of 656 metres. Sarmatian sandstone was encountered by the
Well in line with the pre-drill geological model, however, no
commercially recoverable hydrocarbons were indicated on the logs.
The operator has therefore advised the Company that the Well is to
be plugged and abandoned. Prospex's wholly-owned subsidiary, PXOG
Massey Limited, holds a 50% non-operated interest in the 984 sq km
Concession with the balance held by Raffles.
The Bainet-2 well was targeting Bainet West, a look alike
prospect to the Concession's Bainet gas field, which produces from
Sarmatian sandstone reservoirs similar to other fields in and
around Suceava. Bainet-2 encountered Sarmatian sandstone between
535 metres and 557 m of depth. A detailed post-drill technical
review of all relevant well and seismic data will be conducted by
the Company and its partner Raffles to determine the next steps at
Suceava which, in addition to the producing Bainet field, contains
multiple discoveries, prospects and leads that have been mapped on
2D seismic.
Operations at Bainet-2 will continue for some days. The cost of
the Well, including plugging and abandoning, is estimated at
EUR520,000 or EUR260,000 net to Prospex.
Prospex Non-Executive Chairman, Bill Smith, said, "Clearly the
result of the Well is not what we were looking for, however, our
first thoughts are to commend the operations team on the ground and
our partner in the Concession on the drilling of Bainet-2 without
incident, within budget and on schedule. Bainet-2 had a favourable
risk / reward trade-off. However, as is the nature of oil and gas
exploration, discoveries can only be made following success with
the drillbit, regardless of the presence of a number of producing
fields and historic discoveries on or around a licence, as is the
case with Suceava.
"Importantly, the result of Bainet-2 has no bearing on the
considerable asset backing behind the Company, specifically the
2.26 bcf 2P reserves and 2.40 bcf contingent resources assigned to
our 17% interest in the soon to be producing Selva field, onshore
Italy. It is worth bearing in mind that If we were looking to
acquire an interest in a licence with net reserves of 2.26 bcf and
2.4 bcf 2C resources, we would expect to pay a sum considerably
more than the current market value of the Company. Furthermore, the
result of the Well has no bearing on the company-making gross
prospective resources we have identified across our portfolio of
onshore European projects, including the up to 830 billion cubic
feet of gas (Best Estimate, Gross) at the Tesorillo gas project in
Spain and also our 17% share of the 91.5Bcf (Gross) prospective
resources estimated for four prospects close to Selva in Italy.
"In Spain work is underway to de-risk the huge resource base and
identify suitable drilling locations. In Italy, in addition to
bringing Selva online at a rate of up to 150,000 cmpd in 2020, the
partners are planning to acquire 3D seismic across already
identified prospects, a number of which are considerably larger
than Selva. We are also closely evaluating new projects with a view
to adding a fourth leg to our portfolio, grow our pipeline of low
cost drilling opportunities and in the process expose our
shareholders to more potentially value triggering activity. While
Bainet-2 would have been a welcome addition to our previous
successes in Romania and Italy, there are plenty more opportunities
both within and outside of our portfolio to go for and I look
forward to providing further updates on our progress in due
course."
Qualified Person Review
Carlos Venturini, Fellow of the Geological Society of London,
Exploration Manager has reviewed and approved the technical
information contained within this press release in his capacity as
a qualified person, as required under the AIM Rules.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Plc Tel: +44 (0) 20 3948
1619
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Jack Botros
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
John Belliss 9427
Duncan Vasey Peterhouse Corporate Finance Tel: +44 (0) 20 7469
0932
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236
Priit Piip 1177
Notes
Prospex Oil and Gas 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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