Prospex Oil and Gas PLC First gas production in Romania (9287A)
17 September 2018 - 4:01PM
UK Regulatory
TIDMPXOG
RNS Number : 9287A
Prospex Oil and Gas PLC
17 September 2018
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
17 September 2018
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
First gas production in Romania
Highlights
-- The Bainet gas field on the EIV-1 Suceava Concession, Romania
commenced the experimental production at an initial rate of
c.0.7mmscf/day
-- Bainet gas production is sold to the local market at current
prices of approximately EUR6 per mcf
-- Represents Prospex's first production revenues from its
portfolio of licences focused on the European Foredeep play, which
includes a further gas discovery onshore Italy that is being
advanced towards production
-- Similar gas prospective areas / potential drilling targets on
the licence currently being evaluated as part of forward
development plan to scale up revenues
Prospex Oil and Gas Plc, the AIM quoted investment company, is
pleased to announce that it has been advised by the operator,
Raffles Energy S.R.L. ('Raffles'), that first gas production has
commenced from the Bainet gas field ('Bainet' or 'the Field') in
the Exploration Area of the EIV-1 Suceava Concession (the
'Concession' or 'Suceava'), North East Romania. Prospex's
wholly-owned subsidiary PXOG Massey Limited holds a 50%
non-operated interest in the 980 sq km Concession.
Gas from the Field is sold into the national grid run by
Transgaz at the Romanian market prices of circa EUR6 per mcf. The
buyer of gas is a well-established Romanian gas trading business.
Gas delivered in one month is paid for in the following month. The
operator has elected to target an initial flow rate of
c.0.7mmscf/day (approximately equivalent to 20,000 scm/day).
Production rates may be adjusted up or down according to the well
performance and the market demand.
Bainet, which was drilled in November 2017 and completed as a
producer, has been connected to the Raffles operated Bilca gas
processing plant via a 2.2km flowline tie back to the existing
production infrastructure. The Well was drilled to a total depth of
600m and encountered 9m of reservoir with 8m of net gas pay
consisting of a good quality Sarmatian sandstone reservoir, similar
to that found in fields producing in and around the Concession.
Bainet was the first ready-to-drill prospect out of the multiple
prospects and leads identified on the Concession. The remaining
prospects continue to represent relatively low cost opportunities
to further increase production at Suceava and are currently being
evaluated for exploration and potential development.
Bainet came on stream within the original drilling and
development estimate, Prospex has paid its share, totalling
EUR400,000.
Prospex non-executive Chairman, Bill Smith, said, "The
commencement of first gas production in Romania is a milestone
event, which transforms Prospex into a revenue generative
investment company. With multiple similar prospects already
identified on the licence, each of which can be explored and
developed at relatively low cost, Suceava represents an excellent,
low risk opportunity to scale up our revenues.
"Prospex first announced the acquisition of a 50% interest in
Suceava in August 2017 and in the intervening period not only has
the joint venture made a commercial gas discovery but we have
completed planning, permitting and development work and now brought
the Bainet well into production. To have successfully put Bainet
into production in such an incredibly short time frame,
congratulations must first go to Raffles, the operator, whose
professional approach and proven experience have enabled us to
reach this very significant step on budget. I would also however
like to take this opportunity to congratulate our own first-rate
team, who not only identified Suceava as a suitable project but
their contribution along the way. This is an incredible achievement
for any oil and gas company, let alone a junior such as
Prospex.
"We intend to replicate this success elsewhere on our other
licences, including the Podere Maiar gas discovery onshore Italy
which is being advanced towards production, and Tesorillo in Spain
where work is underway to de-risk up to 2TCF of gross prospective
resources. With activity ongoing across our asset base, I look
forward to providing further updates on our progress."
Carlos Venturini, Fellow of the Geological Society of London,
Exploration Manager has reviewed and approved the technical
information contained within this press release in his capacity as
a qualified person, as required under the AIM Rules.
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 3948
1619
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
DRLLFMBTMBBBTLP
(END) Dow Jones Newswires
September 17, 2018 02:01 ET (06:01 GMT)
Prospex Oil And Gas (LSE:PXOG)
Historical Stock Chart
From Apr 2024 to May 2024
Prospex Oil And Gas (LSE:PXOG)
Historical Stock Chart
From May 2023 to May 2024