Prospex Oil and Gas PLC Government Approval for Onshore Poland Well (8883M)
October 19 2016 - 1:00AM
UK Regulatory
TIDMPXOG
RNS Number : 8883M
Prospex Oil and Gas PLC
19 October 2016
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
19 October 2016
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Government Approval Received for onshore Poland Well
Prospex Oil and Gas Plc, the AIM quoted investment company, is
pleased to announce that approval has been received from the
Ministry of Environment to drill the Boleslaw-1 well ('Boleslaw-1'
or 'the Well') in the 1,150 sq km Kolo Licence ('Kolo'), onshore
Poland. Boleslaw-1 is targeting gas in an active petroleum system
and remains on track to be drilled in Q4 2016. Following approval,
the next step will involve filing the final application for the
drilling permit (Plan Ruchu), which is expected to be completed
shortly. Kolo is 100% owned by Strzelecki Energia Sp z.o.o
('Strzelecki'), a wholly owned subsidiary of Hutton Poland Limited
('Hutton') in which Prospex holds a 49% interest.
Prospex has been advised by the directors of Hutton that
Strzelecki has received confirmation from the drilling contractor,
Exalo Drilling SA ('Exalo'), that well pad construction will
commence in the week commencing 7 November and take approximately
14 days to complete. In addition, long lead items have been ordered
and will be delivered to the site towards the end of November.
Among these items is the Skytop TR 800 drilling rig, which is a
more powerful rig than the Cooper LTO 550, which Exalo originally
intended to use. Exalo has confirmed that the Skytop will be
supplied at no extra cost.
The Well will be targeting Boleslaw, which is a drill ready gas
prospect with two mapped reservoirs that was assigned a gross best
estimate of 87 bscf and a risked current valuation ranging from
GBP5.7m to GBP9.1m (net to Prospex) by AGR TRACS in an independent
Competent Persons' Report ('CPR') (see announcement of 26 May 2016
for further details). In the CPR, AGR modelled production scenarios
at 3,333-6,666 boe per day from a single well and assigned a Net
Present Value ('NPV') range from GBP35m to GBP77m (net to
Prospex).
Prospex non-executive Chairman, Bill Smith, said "Government
approval represents another major milestone achieved, as we look to
drill what our Competent Person described as 'a worthwhile and
attractive exploration opportunity'. Together with confirmation
that well pad construction is to commence in the next few weeks,
Boleslaw-1 remains on track to be drilled in Q4 2016. In tandem
with the progress being made at Kolo, we continue to evaluate other
opportunities which match our investment criteria: specifically
undervalued projects in Europe that would benefit from low cost
re-evaluation/re-working with short timelines to production and
multiple value trigger points within 12 months of acquisition. This
is an exciting time for Prospex as we look to build a leading oil
and gas investment company, and I look forward to providing further
updates on our progress."
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Tel: +44 (0) 203
Plc 586 1009
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
Jon Belliss Beaufort Securities Tel: +44 (0) 207
Limited 382 8300
Lucy Williams Peterhouse Corporate Tel: +44 (0) 207
Charles Goodfellow Finance 469 0932
Eran Zucker Peterhouse Corporate
Finance
Peterhouse Corporate
Finance
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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