Prospex Oil and Gas PLC Update on Kolo Licence & Placing to Raise £775,000 (8305G)
10 August 2016 - 10:46PM
UK Regulatory
TIDMPXOG
RNS Number : 8305G
Prospex Oil and Gas PLC
10 August 2016
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
10 August 2016
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Update on Kolo Licence, onshore Poland
Placing to Raise GBP775,000
Prospex Oil and Gas Plc, the AIM quoted investment company, is
pleased to provide an update on its investment in the 1,150 sq km
Kolo Licence ('Kolo'), onshore Poland where a well remains on track
to be drilled on the Boleslaw conventional gas prospect in Q4 2016.
Kolo is 100% owned by Strzlecki Energia Sp z.o.o ('Strzlecki'), a
wholly owned subsidiary of Hutton Poland Limited ('Hutton') in
which Prospex holds a 49% interest. On behalf of the Company,
Beaufort Securities successfully raised GBP775,000 in an
oversubscribed placing, the proceeds of which will be used to
further support activities at Kolo, if required, as well as provide
scope to explore additional investment opportunities and for
general working capital.
Prospex has been advised by the directors of Hutton that
Strzlecki, the licence holder of the Kolo concession, has entered
into a lease agreement with the land owner at the proposed location
of the Boleslaw-1 well. The term of the lease is four years with
the option to extend this as required as part of a producing gas
field development. The next steps will involve pad construction and
the securing and mobilisation of the drill rig ahead of the
commencement of drilling operations in Q4 2016. Further updates
will be provided to the market in due course.
To support its investment in the Kolo Licence and wider strategy
to build a portfolio of high impact, onshore and shallow offshore
European opportunities, the Company has successfully completed,
subject only to admission, a placing to raise approximately
GBP775,000 via the issue of 70,454,545 new ordinary shares at a
price of 1.1 pence per share (the 'Placing'). Application has been
made for the New Ordinary Shares to be admitted to trading on AIM
and dealings are expected to commence on 24 August 2016.
Following the issue of the New Ordinary Shares, the total number
of shares in issue is 285,785,836. There are no shares held in
treasury, therefore, the total number of voting rights in the
Company is 285,785,836 . This figure may be used by shareholders in
the Company 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 under the Disclosure and Transparency
Rules.
Prospex non-executive Chairman, Bill Smith, said "Securing the
surface access for the proposed drill site at Kolo is a key
tangible milestone. With Hutton Poland's team delivering progress
on schedule and demonstrating positive engagement with local
stakeholders, Boleslaw-1 remains on course to be drilled in Q4
2016. We view this well as being potentially a low risk company
maker while AGR describe it as 'a worthwhile and attractive
exploration opportunity'.
"The Kolo Licence represents an excellent first investment for
Prospex and we were delighted with the appetite for this
oversubscribed placing. The funds raised place the Company in a
strong position to reach further significant milestones in the
development of this asset, as we continue to build a portfolio of
high impact onshore and shallow offshore European opportunities
with short timelines to production. With this in mind, we are
evaluating other investments, specifically undervalued projects
where low cost re-evaluation/re-working of historic exploration
offer scope for tangible value trigger points and material value
uplift for stakeholders within 12 months of acquisition. 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) 207
Plc 887 1461
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
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