TIDMPXEN
RNS Number : 0308Q
Prospex Energy PLC
24 June 2022
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
24 June 2022
Prospex Energy PLC
('Prospex' or the 'Company')
El Romeral: Start of Solar Installations to Increase and
Diversify Generation
Prospex Energy PLC (AIM: PXEN), the AIM-quoted investment
company focused on European gas and power projects, is pleased to
announce that the first of two projects in solar generation
diversification at the El Romeral power plant in southern Spain
('El Romeral') has commenced. The Company holds a 49.9% working
interest in El Romeral through its interest in Tarba Energía S.L.
('Tarba'). The remaining 50.1% working interest is owned by Warrego
Energy Limited (ASX: WGO).
Installation work to place solar panels on the roof of the power
plant ('Project Apollo') was approved by Tarba earlier this month
and is expected to be completed by the end of July. Project Helios,
the second solar generation project, involves the installation of
photo-voltaic panels on land adjacent to the plant. Front-end
engineering and design ('FEED') studies for Project Helios were
approved by Tarba earlier this year and have now commenced.
El Romeral continues to provide a very healthy income from
selling electricity on the spot market in Spain. Following the gas
price cap instituted by the Spanish government as of mid-June,
daily electricity prices are expected to average EUR150/MWhr for
the coming 12 months. The El Romeral power plant is now operating
24 hours a day seven days a week as its default operating mode,
thereby optimising revenue.
Project Apollo Highlights
-- The installation of solar panels on the roof of the El
Romeral power plant will result in increased sales of
electricity.
-- Cost of installation is less than EUR50,000 and has been
financed from existing funds held by Tarba. Payback from this
investment is estimated to be approximately four years.
-- Installation of a total of 83 photo-voltaic panels in three
separate zones on the power plant roof giving a total installed
peak capacity of 41.5 kWh. With the sunny climate of Andalusia,
this is expected to generate 66 MWh in the first year.
-- Energy generated from the photo-voltaic installation will
feed the plant's ancillary services thus covering part of the
plant's electricity demand during daylight hours allowing increased
electricity sales.
Project Helios Highlights
-- FEED studies to evaluate the options to install solar panels
adjacent to El Romeral have been awarded to two local contractors.
This will include the total cost and schedule including the
permissions and permitting required.
-- Subject to further definition from the FEED studies, the
capacity of Project Helios is expected to be in the region of 5
MW.
-- Cost of FEED studies is EUR50,000 which is also being
financed from funds held by Tarba. The total cost of Project Helios
is being defined but is expected to be covered by future cash flows
from El Romeral augmented by project finance.
-- Tarba is currently assessing land options and undertaking an initial environmental assessment
-- Both solar projects take full advantage of the existing
connection to the power grid at El Romeral which has ample capacity
to take the increased generation output.
Mark Routh, Prospex's CEO, commented:
"We identified the opportunity for solar co-generation last
year, so it is extremely satisfying to be proceeding with these two
projects which increase the sale of electricity and boost the ESG
credentials of Tarba and its owners, both Prospex and Warrego."
"The installation of solar panels on the roof of the El Romeral
power plant is a very fast and cost-effective way to increase our
income at the plant whilst we await the approvals to drill further
wells on the El Romeral production concessions. The installation of
a solar farm adjacent to the plant will take longer and will be of
greater scale but indications are that it will be value accretive
and will enjoy short payback, made easier because of the existing
grid connection and ample export capacity at El Romeral. Since the
gas available from the producing wells on the El Romeral
concessions allows just one of the three generators to be active at
a time, the plant is at just 30% of capacity. Receiving the permits
to drill just two of the many identified structures on the existing
concessions can take the capacity of the plant back to 100% of its
design 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
Ritchie Balmer Strand Hanson Limited Tel: +44 (0) 20
Rory Murphy 7409 3494
Andrew Monk (Corporate Broking) VSA Capital Limited Tel: +44 (0) 20
Andrew Raca/Alex Cabral (Corporate 3005 5000
Finance)
Colin Rowbury Novum Securities Tel: +44 (0) 20
Jon Belliss Limited 7399 9427
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ana Ribeiro Limited 7236 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 30% of its full capacity whilst Tarba waits 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 50.1% working interest
is owned by Warrego Energy Limited (ASX:WGO). Tarba sells
electricity generated from the plant on the spot market in Spain.
The El Romeral licences comprise three contiguous production
concessions.
The Corporate Presentation for Q2-2022 is available on the
Company's website at https://bit.ly/3vhTXwL .
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDPPUBUQUPPGQW
(END) Dow Jones Newswires
June 24, 2022 02:00 ET (06:00 GMT)
Prospex Energy (AQSE:PXEN.GB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Prospex Energy (AQSE:PXEN.GB)
Historical Stock Chart
From Jul 2023 to Jul 2024