Prospex Energy PLC Production Strategy at El Romeral Power Project (0376F)
17 March 2022 - 6:00PM
UK Regulatory
TIDMPXEN
RNS Number : 0376F
Prospex Energy PLC
17 March 2022
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
17 March 2022
Prospex Energy PLC
('Prospex' or the 'Company')
Production Strategy at El Romeral Power Project
Prospex Energy PLC, the AIM quoted investment company focused on
European energy projects, is pleased to provide an update on the
production strategy from its El Romeral power project near Carmona
in Southern Spain in which the Company holds a 49.9% working
interest through Tarba Energía S.L. ("Tarba").
The owners of Tarba (Prospex and Warrego Energy Limited) have
agreed to operate the El Romeral power plant 24 hours per day for
six days per week until further notice. The reservoir performance
and the operating regime are being monitored closely and the Tarba
management is confident that the right balance is being achieved
between ultimate recovery of remaining reserves and maximising
electricity output and therefore income at this time.
Over the last two weeks the power plant has been successfully
operating 24 hours a day, six days a week securing the recent high
electricity prices. The power-plant automation and operational
procedures have now been fully tested to enable continuous
operation whenever required.
Currently Tarba has cash in hand of more than EUR400,000 and the
forecast revenue for March 2022 is likely to exceed EUR500,000 at
current forward curve electricity prices([1]) .
The reservoir modelling work by Tarba will continue to forecast
gas production profiles from the El Romeral concession using a
suite of production strategies including further sensitivities on
rates, pressures and ultimate recoveries. The production strategy
will be regularly reviewed and optimised based on sound reservoir
management.
Mark Routh, Prospex's CEO, commented:
"The El Romeral concession has been producing gas for the power
plant for twenty years and it was essential that the rate of
production decline was thoroughly understood before instigating
continuous plant operations. We now know that continuous operations
are feasible and safe. I am very proud of our management and
operating team at the plant who have embraced this new operating
regime which was made possible by the success of the plant upgrades
installed last December."
"We have selected the optimum production strategy based on the
latest reservoir modelling which strikes the right balance between
maximising recovery and optimising electricity production at this
crucial time for the supply of energy in Europe. Reservoir
modelling will continue and our production strategy will be
optimised to match the availability of new gas production from our
planned infill wells in the El Romeral concession."
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
Lucy Williams Limited 9797
Susie Geliher St Brides Partners Tel: +44 (0) 20 7236
Ana Ribeiro Ltd 1177
Notes
Prospex Energy 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. The Company will rapidly scale up gas production
in the short term to generate internal revenues that can then be
deployed to develop the asset base and increase production
further.
About El Romeral and Tarba
The El Romeral gas and power project in Spain, with gas
production wells supplying gas to an 8.1MW power plant near Carmona
in Southern Spain is owned and operated by Tarba. It is currently
operating at about 20% of its full capacity because Tarba is
waiting on permits to drill further infill wells on the concessions
to increase production. Prospex owns a 49.9% working interest in
the El Romeral project via Tarba. The remaining 51.1% working
interest is owned by Warrego Energy Limited (ASX:WGO). Tarba sells
electricity generated from the plant on the spot market in Spain.
Current spot market prices have reached all-time highs in recent
months. The El Romeral licences comprise three contiguous
production concessions.
The updated Corporate Presentation for Q1-2022 is available on
the Company's website at https://bit.ly/3G6JtCm .
([1]) Forward curve electricity prices in Spain sourced from
https://www.omip.pt/en/plazo-hoy
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