Prospex Energy discuss their next Milestone

Sep 28, 2020, 12:36 PM

Ed Dawson, Managing Director of Prospex Energy #PXEN discusses their achievements in the last 6 months and milestones to come in the next 6 months.

Prospex Energy PLC, the AIM quoted investment company, is pleased to announce its unaudited Interim Results for the six months ended 30 June 2020. 

Advancing a portfolio of late stage, onshore European gas projects that cover the entire energy cycle from exploration and development to production and power generation.

 Portfolio Overview 

Podere Gallina Exploration Permit, onshore Italy - first production at Selva gas field ('Selva') at an initial rate of up to 150,000 scm/day expected H1 2021 

·    Progressing permitting process for production concession

o  Formal technical environmental approval for the development of Selva received from the Italian Environment Ministry

o  Next steps include final sign off by Ministerial decree, the issuing of the required INTESA (intergovernmental agreement) and the final grant of a production concession from Italy's Economic Development Ministry 

·    Pursuing early discussions regarding non-equity linked funding of Prospex's c. €400,000 share of Selva development costs 

El Romeral, onshore Spain - acquisition of integrated gas and power project

·    Acquisition of 49.9% interest in El Romeral for net consideration of €375,000, which has been paid 

o  Transfer of interest to Prospex's Spanish affiliate ongoing, delayed by COVID-19

·    Multiple low risk opportunities to increase gas production via two development locations with 5 billion cubic feet ('Bcf') of gross contingent resources and 11 prospects with 90 Bcf of gross, un-risked prospective resources with high Chance of Success of >70% (in most cases)

·    Significant scope to increase power generation at plant - power plant currently constrained to operating at c. 22% capacity due to current wells' tail production 

o  Full capacity at the plant can be achieved with one successful new well coming on stream

o  Operating at 100% capacity and selling electricity at Spain's historic average price of €70 per MWh (including subsidy) has the potential to generate annual revenues and profit before tax of €4.2 million and €2.4 million, respectively, (€1.8 million profit after tax) from the asset

·    Low cost preparatory work underway to ensure a three-well campaign can commence as soon as possible once the transfer has been completed

 EIV-1 Suceava Concession, onshore Romania - production at Bainet field 10% above expectations

·    Average daily production 10% ahead of budgeted - at 15,000m3 per day and above the 14,000m3 per day average in 2019  

·    Ongoing evaluation of the concession's gas prospectivity to determine licence extension and next drilling targets 

 Tesorillo Gas Project, onshore Spain - de-risking up to 830 Bcf of gas (Best Estimate) of gross un-risked prospective resources 

·    Encouraging results of ongoing work programmes, initial results include:

o  Multiple potential gas traps on exploration target identified following reprocessing and interpretation of historic 2D seismic data 

o  Identification of four promising leads in the northern half of the concession following integration of new structural maps and cross sections with well reinterpretation and satellite images 

·    Working towards decision to drill and increase stake to 49.9% from current 15%

 Financial/Corporate Overview

·    Total Assets of £6,202,327 as at 30 June 2020, providing significant asset backing

·    14% reduction in administrative expenses to £416,885 (H1 2019: £484,713)

·    £720,000 raised via an oversubscribed placing of 600,000,000 new ordinary shares to help fund the Company's acquisition of a 49.9% indirect stake in El Romeral 

o  Certain Directors acquired new shares in the Company with an aggregate value of £140,000 as part of the Placing

·    Share re-organisation effecting one new ordinary share for 25 existing ordinary shares

·    Change of Company name to Prospex Energy plc

Vox Markets is revolutionising the way companies engage with shareholders and the stock market at large. By aggregating IR and digital content onto one secure and compliant platform, Vox Markets has established itself as the go-to resource for the investment community.

#VoxMarkets #StockMarket #LivePrices #StockMarketNews #Money #Investing #Investments #Finance #Business #Podcast