Prospex Oil and Gas PLC Update on Tesorillo Project, Spain (5172U)
13 July 2018 - 4:00PM
UK Regulatory
TIDMPXOG
RNS Number : 5172U
Prospex Oil and Gas PLC
13 July 2018
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
13 July 2018
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Update on Tesorillo Project, Spain
Prospex Oil and Gas Plc, the AIM quoted investment company, is
pleased to provide an update on the ongoing work programme to test
known gas bearing sandstone sequences at the Tesorillo Project
('Tesorillo' or 'the Project') in the Cadiz Province, southern
Spain. Tesorillo covers 38,000ha in a proven hydrocarbon region and
contains a known gas discovery, 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.
The operator at Tesorillo, Tarba Energia (previously called
Schuepbach Energy Espania), has notified the Company that the
relevant contracts to carry out a passive Audio-Magnetotellurics
('AMT') survey on the licence area have now been awarded to
GeoProSys and GeoGnosia, two leading European AMT expert
contractors. With all preparatory work nearing completion and
mobilisation ongoing, the Tesorillo 2018 AMT survey is due to
commence in the near-term, as soon as access to the land can be
gained once this year's exceptionally late harvesting season in
Southern Spain ends. In addition to historic seismic survey data,
the AMT survey will help evaluate the subsurface geology of the
permit area and test for resistivity as a further indication of the
presence of hydrocarbons. It is expected that after AMT data
acquisition is completed, subsequent processing and interpretation
phases will follow, with final results expected late 2018.
In tandem with the AMT survey, structural fieldwork mapping and
analysis will be shortly initiated with the support of the
University of Granada. This applied geoscience analysis will be
complementary to the subsurface knowledge gained via the AMT
survey. In addition, technical discussions with potential drilling
and completion contractors are at an advanced stage as part of the
ongoing well permitting and approvals process initiated at Ministry
level.
Following receipt of the required approvals and support from the
local authorities, an environment impact assessment (EIA) has been
commissioned. As part of this process, relevant surveys over the
Tesorillo permit are currently being carried out by a
well-recognised environment consultancy group from Seville.
As announced on 19 December 2017, Prospex currently holds a 2.5%
interest in Tesorillo and has the option to increase this to 49.9%
based on the results of the current work programme, which includes
the MT Survey and, subject to the results, a well to target the
Almarchal-1 discovery.
Prospex non-executive Chairman, Bill Smith, said, "With an
historic gas discovery, exposure to the European fore deep play,
excellent access to infrastructure and local markets, Tesorillo
shares many similar characteristics to our interests in Romania and
Italy where over the last 12 months commercial gas discoveries have
been made at both projects. One major difference however is the
potential size of the field at Tesorillo. Whereas prospective
resources on the near term producing Podere Gallina permit in Italy
and the Suceava permit in Romania are estimated in terms of tens of
BCF of gas, there could be up to two trillion cubic feet of gas at
Tesorillo. We consider potential resources at Tesorillo to be on a
far larger scale and success here would therefore be game-changing
for Prospex. With this in mind, we are looking forward to
commencing the MT Survey, the results of which will inform a
planned drilling campaign focused on unlocking the huge volumes of
recoverable gas we believe the field holds."
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 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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