Prospex Energy PLC El Romeral: Income Update (9790W)
30 December 2021 - 5:59PM
UK Regulatory
TIDMPXEN
RNS Number : 9790W
Prospex Energy PLC
30 December 2021
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
30 December 2021
Prospex Energy PLC
El Romeral: Income Update
Prospex Energy PLC, ('Prospex' or the 'Company') the AIM quoted
investment company (AIM: PXEN) focused on European gas and power
projects, is pleased to provide an update on the El Romeral power
plant in southern Spain ('El Romeral') which is currently providing
a very healthy income from selling electricity into the spot market
in Spain at record levels. The Company holds a 49.9% working
interest in El Romeral through its interest in Tarba Energía
('Tarba').
Highlights:
-- Loan repayment made by Tarba to its shareholders of EUR300,000 on 29 December 2021
-- Prospex's share of this is EUR149,700
-- Tarba has now repaid its shareholders 40% of the EUR750,000 acquisition cost of El Romeral
-- Further loan repayments expected in 2022
As a direct result of the strong electricity prices which have
been realised in Q4 2021, on 29 December 2021, Tarba made a loan
repayment of EUR300,000 to its shareholders. Prospex's share of
this is EUR149,700. This will further bolster the Company's cash
flow position into the New Year. This reduces the shareholder loan
balance in Tarba for the El Romeral asset.
From September to December 2021 gross monthly income from El
Romeral has averaged more than EUR241,000 per month, a significant
increase from previous periods due to the high electricity prices
in Spain. Indeed, spot prices in excess of EUR400/MWhr have been
seen in Spain, and the average price between September to December
2021 has been more than EUR180/MWhr. For comparison, from March to
August 2021 (when the El Romeral plant was acquired) the price
achieved averaged EUR76/MWhr which translated to average gross
monthly income of EUR93,000 per month.
The high income from electricity generation at the plant has
been augmented by the ability of the plant to run 24-hour
operations regularly. The initial outlay by Tarba for the plant
optimisation and automation project of EUR90,000 is now expected to
have delivered a return on investment by the end of January
2022.
Since the El Romeral plant is now comfortably meeting its
running costs and since forward curve electricity prices are
looking very strong, Prospex expects that during 2022 further loan
repayments are likely to be passed up to its shareholders.
Mark Routh, Prospex's CEO, commented:
"This loan repayment by Tarba Energía to its two shareholders is
40% of the EUR750,000 acquisition cost of El Romeral. With
electricity spot prices at an all-time high and the forward curve
looking extremely robust, I am confident that Tarba can comfortably
make further loan repayments up to its shareholders over the coming
year. This means that Prospex is likely to be generating a net
income towards its overheads and operating costs, something which
will sit very well with shareholders and potential investors
alike."
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
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
Duncan Vasey Peterhouse Capital Tel: +44 (0) 20 7220
Limited 9797
Susie Geliher St Brides Partners Tel: +44 (0) 20 7236
Catherine Leftley Ltd 1177
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