Prospex Energy PLC Update on Well Interventions & Plant Optimisation (6497Q)
October 29 2021 - 1:00AM
UK Regulatory
TIDMPXEN
RNS Number : 6497Q
Prospex Energy PLC
29 October 2021
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
29 October 2021
Prospex Energy PLC
Update on the El Romeral Well Interventions and Plant
Optimisation
Prospex Energy PLC, ('Prospex' or the 'Company') the AIM quoted
investment company (AIM:PXEN) focused on European gas and power
projects, provides an update on the El Romeral well intervention
project in southern Spain, in which the Company holds a 49.9%
working interest, through its interest in Tarba Energia.
The investment in the surveillance in the El Romeral wells has
delivered valuable data regarding the status of the wells and the
reservoirs. It allows up-dating of the expectations regarding the
geological model of the reservoir and the well performance of the
facilitates and the decision-making process. Unfortunately the
measurements in well Rio Corbones-1 demonstrated that the planned
restoration of the gas production was not possible. After several
slickline runs to remove the water from the tubing it quickly
became clear that no gas was evident coming from the well, only
further influx of water from the reservoir. Without the presence of
gas there was no possibility of creating a foam to lift the water
and so the well intervention programme was curtailed after having
acquired downhole pressure and temperature data. The equipment was
then transferred in turn to the three producing wells to complete
the data acquisition programme acquiring downhole pressures,
temperatures and flowrates for the calculation of remaining
reserves and production optimisation.
The gross budget for the well intervention work was EUR103,000,
comprising EUR79,000 for the well intervention and EUR24,000 for
data acquisition. The final expenditure for the overall programme
is estimated to be less than EUR80,000, owing to the reduced scope
of work.
The planned plant optimisation programme has been delayed by
equipment supply chain issues. The necessary equipment to automate
plant operations to allow continuous operation of the generators is
expected on site next week and the upgrades will then commence
immediately. As stated in the announcement on 1 October 2021, the
system optimisation project is expected to boost income from power
generation by up to 65% by achieving 24-hour operations.
Mark Routh Prospex's CEO commented:
"It is disappointing that the well intervention at Rio
Corbones-1 has not resulted in re-establishing gas production from
the well. However the static and dynamic pressure data collected
from the producing wells will be used to determine remaining
reserves and to optimise the infill well drilling campaign planned
when permitting is in place in 2H 2022. This low cost well
intervention programme was well below budget and significantly, it
has informed us that a more costly well intervention on this well
such as velocity strings would not have been worthwhile.
"At Rio Corbones-1 the reservoir and previous production data
indicated that there was still a significant volume of gas in
place. We were not aware of the full extent of the aquifer that we
encountered. The information gleaned from this re-entry will give
us a greater understanding of the geology in the El Romeral
area.
"It is frustrating that the supply of equipment has delayed the
plant optimisation programme, but this will be underway as soon as
the necessary parts arrive on site next week. I will update
shareholders as soon as we have firm data on the expected increased
power generation 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
Limited 9797
Susie Geliher St Brides Partners Tel: +44 (0) 20 7236
Catherine Leftley Ltd 1177
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