Prospex Oil and Gas PLC Placing to Raise £800k & Joint Broker Appointment (5241S)
March 12 2019 - 2:30AM
UK Regulatory
TIDMPXOG
RNS Number : 5241S
Prospex Oil and Gas PLC
12 March 2019
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
12 March 2019
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Placing to Raise GBP800,000 and Appointment of Joint Broker
Prospex Oil and Gas Plc, the AIM quoted investment company, is
pleased to announce that it has raised GBP800,000 gross via an
oversubscribed placing of 400,000,000 new ordinary shares of
GBP0.001 each in the Company ("Ordinary Shares") (the "Placing
Shares") at a price of 0.2 pence per Placing Share (the "Placing
Price") (the "Placing"). The Placing was undertaken with new and
existing investors.
The net proceeds of the Placing will help fund the Company's
share of the 2019 work programme at the Suceava Concession
('Suceava') in North East Romania. Following the Enlargement of
Suceava, as announced separately today, the partners plan to drill
the Bainet West prospect ('Bainet West') subject to customary
permitting. Bainet West is a lookalike prospect to the Bainet
discovery which was successfully drilled in 2017 and is currently
on production.
Bainet West is well defined on seismic with similar seismic
attributes to the Bainet gas field, lying at a comparable depth and
is similarly positioned in relation to a fault. If a future
discovery was made at Bainet West it would be likely put on
production in a congruent fashion to Bainet. Assuming corresponding
gross costs of EUR800,000 (EUR400,000 net to Prospex) to complete
Bainet-1 as a production well, the funds raised today will more
than cover Prospex's share of costs. Prospex's wholly-owned
subsidiary PXOG Massey Limited holds a 50% non-operated interest in
the now enlarged 984 sq km concession. Bainet West is one of
several low cost / low risk exploration and development
opportunities that have been identified at Suceava.
Prospex Non-executive Chairman, Bill Smith, said, "We are
pleased to have raised these funds for new drilling activity in
Romania and thank all existing stakeholders and new investors for
their support. Having participated in two successful wells in
Romania and Italy in the last 18 months, we are keen to participate
in drilling activity again and Bainet West represents an excellent
opportunity for the partners to do just that. Based on our
experience with the Bainet field - with a less than a year cycle
between drilling and production start-up and, subject to a
successful outcome, Bainet West has the potential to be brought
into production within a similar timeframe. This is fast by
industry standards and demonstrates the value of the Suceava
Concession, where the presence of multiple copycat structures
offers a low risk opportunity to build a cash generative project
for relatively low capital outlay.
"Together with our interest in the Podere Gallina licence
located onshore Italy, where first production at the 13.3bcf Selva
gas field is targeted in 2020, Prospex has a clear line of sight to
a step up in production- based revenues which, in line with our
strategy, can be reinvested back into our existing licences. As
well as Suceava and Podere Gallina, Prospex also holds an interest
in the Tesorillo Project in Spain, where work is underway to
de-risk gross prospective resources of up to 2tcf of gas, including
an historic discovery. At the same time, we continue to evaluate
additional projects to add to our growing portfolio of interests.
This is an exciting period for Prospex, one in which we are
confident the disconnect that has opened up between our market
valuation and the value of our assets will begin to narrow. With
this in mind, I look forward to providing further updates on our
progress."
Admission to Trading on AIM and Total Voting Rights
The Placing Shares will rank pari passu with the existing
Ordinary Shares. Application will be made for the Placing Shares to
be admitted to trading on AIM ("Admission") and Admission is
expected to occur on or around 18 March 2019.
Following Admission, the Company will have in issue a total of
1,613,593,136 Ordinary Shares. The Company has no shares in
treasury, therefore the figure of 1,613,593,136 should be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the share capital of the Company
under the FCA's Disclosure Guidance and Transparency Rules.
Appointment of Joint Broker and issue of Broker Warrants
The Placing was completed by Novum Securities Limited ("Novum"),
which has been appointed as Joint Broker to the Company with
immediate effect. As part of Novum's compensation for their work
undertaken pursuant to the Placing, Novum shall be issued with
8,125,000 warrants to subscribe for, in aggregate, 8,125,000 new
Ordinary Shares at an exercise price of 0.4 pence per new Ordinary
Share for a period of 3 years from Admission.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Plc Tel: +44 (0) 20 3948
1619
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Jack Botros
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
Lucy Williams Peterhouse Corporate Finance Tel: +44 (0) 20 7469
Charles Goodfellow 0932
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236
Priit Piip 1177
Notes
Prospex Oil and Gas Plc is an AIM quoted investment company
focused on high impact onshore and shallow offshore European
opportunities with short timelines to production. The Company's
management acquires 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 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.
END
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