Prospex Oil and Gas PLC Portfolio Update (2685N)
May 08 2018 - 1:01AM
UK Regulatory
TIDMPXOG
RNS Number : 2685N
Prospex Oil and Gas PLC
08 May 2018
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
8 May 2018
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Portfolio Update
Prospex Oil and Gas Plc, the AIM quoted investment company,
provides the following update on its portfolio of investments
focused on high impact onshore and shallow offshore European
opportunities with short timelines to production.
Bainet-1 well, EIV-1 Suceava Concession, onshore Romania
Following the gas discovery by the Bainet-1 well on the
Exploration Area of the EIV-1 Suceava Concession, ('Suceava
Exploration'), work has been undertaken by the operator, Raffles
Energy S.R.L. ('Raffles'), to bring the discovery into production
in H1 2018, subject to permitting consent. The operator reports
land access for the routing of pipeline connecting the discovery to
existing production facilities has been secured. In addition,
front-end engineering and design work has been completed, while
permitting, procurement and contractor selection are well advanced.
The physical pipeline construction and tie-in work will begin once
the final construction permit is received.
Prospex's wholly-owned subsidiary PXOG Massey Limited has a 50%
non-operated interest in Suceava Exploration.
Tesorillo Project, southern Spain
The 2018 work programme, which is designed to further test known
gas bearing sandstone sequences at the 38,000ha Tesorillo Project
('Tesorillo' or 'the Project') is ongoing. This programme is
focused on de-risking a known gas discovery on Tesorillo, which a
Competent Person's Report undertaken by Netherland Sewell and
Associates ("NSAI") in 2015 estimated could hold gross unrisked
Prospective Resources of 830 billion cubic feet of gas (Best
Estimate), with upside in excess of 2 Tcf. Tesorillo is located in
a proven hydrocarbon region in the Cadiz Province, southern
Spain.
The 2018 work programme is being undertaken by the operator and
licence holder Schuepbach Energy Espania ('SEE'). To date
preparatory field work has been undertaken at the Project ahead of
the commencement of an Audio Magnetotellurics ('AMT') survey in
late H1 2018. The AMT survey will evaluate the subsurface geology
of the licence area and test for resistivity, as a further
indicator of the presence of hydrocarbons. The operator expects to
appoint a contractor to carry out this work shortly, at which point
the Company will update the market accordingly.
As announced on 19 December 2017, Prospex currently holds a 2.5%
interest in SEE and has the option to increase this to 49.9% based
on the results of the 2018 work programme. The other shareholder of
SEE is Scheupbach Energy Internation LLP ('SEI'). SEI is in turn
62.7% owned by Petrel Energy (ASX: PRL) ('PRL') and 37.3% by
Schuepbach International Holdings ('SIH'). Prospex is aware that
PRL and SIH have announced a reorganisation of their joint
interests and as a result PRL will take a 100% interest in the
non-Prospex owned interest in SEE.
Boleslaw-1, Kolo Licence, onshore Poland
The Company announces that Strzlecki Energia Sp z.o.o.
('Strzlecki'), 100% owned by Strezlecki Energy Holdings UK ltd
(previously called Hutton Poland Ltd) of which 49% is owned by
Prospex has taken the decision not to extend the Kolo Licence
('Kolo') into the second exploration period. The licence, awarded
in April 2016, was for four years split into two equal periods.
Strzlecki drilled the dry Boleslaw prospect on Kolo in December
2016 to January 2017. As a result of not entering into the second
period, the Company is considering the accounting treatment of its
investment in Strezlecki for its upcoming Final Results for the
year ended 31 December 2017. The well result, as previously
announced, has already led to an impairment of its investment in
Kolo and will be being written down to zero as a result of the
relinquishment of the licence, either at end of 2017 or 2018 half
year.
Prospex non-executive Chairman, Bill Smith, said, "Prospex is a
multi-project investment company and with production from the
Bainet gas discovery in Romania on course to commence later this
quarter and the Podere Maiar gas discovery in Italy due to come on
stream within the next 18 months, our core investments contain
multiple near-term value triggers. In addition, with gross unrisked
Prospective Resources of up to 2 Tcf cubic feet of gas, a historic
gas discovery in a proven hydrocarbon region, and excellent access
to nearby infrastructure, the investment case for Tesorillo is
clear. The 2018 work programme is centred on de-risking Tesorillo's
company-making volumetrics further and with this in mind we are
looking forward to the near-term commencement of the MT survey.
"It is against this backdrop of high impact near-term activity
across our core investments, in tandem with a thorough evaluation
of the relevant data, that the Board has decided to drop its
interest in Kolo. This is an exciting period for Prospex and I look
forward to providing further updates on our progress as we focus on
realising the underlying value of our investments and in the
process build a leading oil and gas investment company."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Plc Tel: +44 (0) 20 3766
0325
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Jack Botros
Duncan Vasey Peterhouse Corporate Finance Tel: +44 (0) 20 7469
0932
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236
Charlotte Page 1177
Notes
Prospex Oil and Gas 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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