Prospex Oil and Gas PLC AGM Statement (1309E)
July 14 2016 - 1:00AM
UK Regulatory
TIDMPXOG
RNS Number : 1309E
Prospex Oil and Gas PLC
14 July 2016
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
AGM Statement
Prospex Oil and Gas Plc, the AIM quoted investment company, is
holding its Annual General Meeting ('AGM') later today.
At the meeting, Edward Dawson, CEO, will make the following
statement:
"We believe Prospex continues to make excellent progress in
building an oil and gas investment company. We are particularly
interested in investing in high impact onshore and shallow offshore
European opportunities with short timelines to production, and
following an equity raise of GBP1.6 million in May 2016, we believe
we are entering an exciting period in our genesis. This is largely
thanks to our 49% interest in Hutton Poland, which we are advised
is on track to drill a first fully funded well in Q4 this year. We
view this well as being potentially 'a low risk company maker'
while an independent Competent Persons' Report ("CPR"), prepared by
AGR TRACS ('AGR'), described it as "a worthwhile and attractive
exploration opportunity". With two horizons being targeted, we
believe this well adds high impact potential in the short term to
the multiple longer term opportunities we are evaluating for
Prospex.
"We acquired a 49% interest in Hutton Poland, holders of the
1,150sq km Kolo Licence ('Kolo') in April this year. We were drawn
to this licence because we believe it is an undervalued project
that could benefit from low cost re-evaluation/re-working, and as a
result has the potential to offer tangible value trigger points
within 12 months of acquisition, and as a result significant uplift
potential for stakeholders.
"Kolo contains multiple opportunities including the Boleslaw
prospect, a drill ready target with two mapped reservoirs, that the
independent Competent Persons' Report ('CPR') by AGR TRACS placed a
gross best estimate at 87 bscf and a risked current valuation
ranging from GBP5m to GBP8.4m (net to Prospex), which, if
successful, would be a significant premium to the GBP620,000
purchase price (see announcement dated 26 May 2016). AGR modelled
production scenarios at 3,333-6,666 boe per day from a single well
and gave a Net Present Value ('NPV') range from US$44m to US$95m
(net to Prospex).
"The directors believe the prospect "ticks the boxes" with an
active petroleum system and a recognised reservoir, with excellent
porosity of between 20-30%. Over the coming weeks the Company
expects to be able to provide further updates from Hutton Poland as
local land owners sign access agreements and as drill contracts are
awarded following the submission of a detailed well design. Once
this has occurred, Hutton Poland will begin the mobilisation phase,
prior to drilling.
"With funds in the bank, a defined strategy in place and the
drilling of the first well at Kolo approaching, I am looking
forward to the future with confidence and would like to thank
shareholders for their continued support."
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Tel: +44 (0) 207
Plc 887 1461
Katy Mitchell WH Ireland Limited Tel: 0113 394
Nick Prowting WH Ireland Limited 6600
Jay Ashfield WH Ireland Limited
Tel: +44 (0)
207 220 1658
Lucy Williams Peterhouse Corporate Tel: +44 (0) 207
Charles Goodfellow Finance 469 0932
Eran Zucker Peterhouse Corporate
Finance
Peterhouse Corporate
Finance
Jon Belliss Beaufort Securities Tel: +44 (0) 207
Limited 382 8300
Charlotte Heap St Brides Partners Tel: +44 (0) 20
Frank Buhagiar Ltd 7236 1177
St Brides Partners
Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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