Prospex Energy PLC El Romeral: Income and Production Update (7852J)
April 29 2022 - 1:01AM
UK Regulatory
TIDMPXEN
RNS Number : 7852J
Prospex Energy PLC
29 April 2022
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
29 April 2022
Prospex Energy PLC
('Prospex' or the 'Company')
El Romeral: Income and Production Update
Prospex Energy PLC (AIM: PXEN), the AIM quoted investment
company focused on European gas and power projects, is pleased to
provide an update on the production strategy of, and income from,
the El Romeral power plant in southern Spain ('El Romeral'). El
Romeral continues to provide a very healthy income from selling
electricity into the spot market in Spain at near record price
levels. The Company holds a 49.9% working interest in El Romeral
through its interest in Tarba Energía S.L. ('Tarba').
Highlights:
-- Loan plus interest repayment made by Tarba to its two shareholders on 28 April 2022.
-- Loan repaid of EUR289,577, plus accrued interest of
EUR19,092.97, equalling a total of EUR308,669.97. Prospex's share
of this is EUR153,698.64.
-- Tarba has now repaid in full its two shareholders, Prospex
and Warrego Energy Ltd, the outstanding loans held in the El
Romeral asset of EUR589,577, plus accrued interest of
EUR19,092.97.
-- The El Romeral power plant is now operating 24 hours a day
seven days a week as its default operating mode, thereby boosting
revenue.
Further information
As a direct result of continuing strong electricity prices,
Tarba has repaid its outstanding debt to its two shareholders in
full. Tarba repaid EUR300,000 to its shareholders on 30 December
2021 and paid the outstanding amount of EUR289,577 plus accrued
interest of EUR19,092.97 on 28 April 2022. Prospex's share of this
latest repayment is EUR153,698.64.
The high income from electricity generation at the plant at near
record prices has been augmented by the ability of the plant to run
24-hour operations. Having successfully run the plant since
mid-March for 24 hours a day six days a week, the operational team
and the subsurface technical team at Tarba have been working
together closely to monitor the performance of the plant and the
gas production with input from reservoir modelling. With the plant
now fully automated, the Tarba executive management team has taken
the decision to run the plant 24 hours a day, seven days a week as
the default operating mode. Electricity generation can be suspended
if needed when electricity pool prices drop below breakeven prices.
This has happened rarely in recent months but with volatility in
the spot price for electricity, the recent plant automation project
has ensured that production and income can be fully optimised.
Tarba has cash in hand of more than EUR600,000 after this loan
repayment. Gross electricity sales revenue for the quarter ended 31
March 2022 was EUR1,046,485.
Mark Routh, Prospex's CEO, commented:
"El Romeral continues to generate very healthy revenues with
electricity spot prices at record levels. This full loan repayment
by Tarba Energía to its two shareholders has been made possible not
only by recent high electricity prices but also because of the
successful implementation of the plant automation project executed
in December last year, which has now resulted in 24/7 plant
operations. Settling this debt cleans up Tarba's balance sheet and
provides it with the financial flexibility to capitalise on further
business development opportunities being worked up in and around
the power plant.
"Tarba remains ready to increase its gas to power generation
capacity at El Romeral as soon as the permits to drill a portfolio
of infill wells on the El Romeral concessions are received.
Achieving 100% output capacity could be realised from the first two
infill wells. A further increase of the plant's generation capacity
would be possible in parallel with the drilling programme.
"The current energy crisis has highlighted the need for
long-term energy independence and security of supply, not only in
Europe but globally. Investment in onshore, indigenous local
projects such as El Romeral, is key if we are to address the
challenges posed by the rise in global energy prices and volatility
in international markets. We are delighted to be part of the
solution, albeit in a small way."
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 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. It is currently
operating at about 20% of its full capacity because Tarba is
waiting on permits to drill further infill wells on the concessions
to increase production. Prospex owns a 49.9% working interest in
the El Romeral project via Tarba. The remaining 51.1% working
interest is owned by Warrego Energy Limited (ASX:WGO). 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. The El Romeral licences comprise three contiguous
production concessions.
The updated Corporate Presentation for Q2-2022 is available on
the Company's website at https://bit.ly/3vhTXwL .
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