Prospex Oil and Gas PLC AGM Statement (4445R)
30 June 2020 - 4:00PM
UK Regulatory
TIDMPXOG
RNS Number : 4445R
Prospex Oil and Gas PLC
30 June 2020
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil
and Gas
30 June 2020
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Annual General Meeting Statement
Prospex Oil and Gas Plc, the AIM quoted investment company, is
holding its Annual General Meeting ('AGM') later today. At the
meeting, Edward Dawson, CEO of Prospex, will make the following
statement:
"The 2020 Prospex Oil & Gas AGM is unusual, not just because
COVID-19 has prevented shareholders from attending and voting in
person, but also because a resolution has been put forward for
shareholders to vote by proxy to change the Company's name to
Prospex Energy Plc. In our view, the proposed name change reflects
how far we have come in terms of building a portfolio of onshore
European projects that are at various stages of development and
cover the entire energy cycle including exploration, development,
production and power generation. Today, Prospex has a producing gas
field in Romania, an integrated gas and power project in Spain, a
gas discovery in Italy that is expected to come online in H1 2021
and a large scale exploration / appraisal project in southern Spain
that has the potential to hold up to 830 Bcf of gas.
"It is no coincidence that all our projects target gas as
opposed to oil. Historically gas prices are less volatile than oil
benchmarks, due in part to the fuel typically being sold to local
markets at prices agreed in multi-year contracts, providing a
greater degree of predictability to revenues. Natural gas is the
cleanest hydrocarbon in terms of carbon emissions when combusted,
and so is increasingly viewed as an important transition fuel as
the world moves towards net zero emissions. We believe now is the
right time to change the Company's name to Prospex Energy as the
Board attaches a great deal of importance to its Environmental,
Social and Governance ('ESG') obligations and the Company is on
course to become a 49.9% owner of an 8.1 MW power station that
sells electricity to the Spanish grid, subject to the completion of
the transfer of the El Romeral asset.
"The proposed name change is not based solely on the Company's
assets today but also on those we expect to acquire in the future.
Three of our four core projects are either currently producing gas,
such as the Bainet field in Romania and the El Romeral gas and
power project in Spain, or being advanced towards first production,
as is the case with the Selva gas field in Italy, but all our
projects offer multiple follow-up opportunities to substantially
grow the number of gas fields within our portfolio.
"At El Romeral in Spain there are, gross contingent resources of
5 Bcf and gross prospective gas resources of 90 Bcf have been
identified at two development locations and 11 very-low risk
prospects respectively. These provide considerable scope to add to
the three producing wells on the licence, which would not just
increase gas production but would also scale up electricity
generation towards the plant's full capacity. Together with enough
gas resources to feed the plant for years to come, El Romeral has
the potential to generate annuity-like returns for Prospex, which
in turn could be reinvested elsewhere in our portfolio to increase
production and cash flows further.
"Another prime candidate for follow-up activity is the Podere
Gallina Permit in the Po Valley region of Italy. Here, as well as
the Selva gas field, which is currently in the process of being
permitted ahead of commencing production in H1 2021, there is much
more to go for in terms of additional prospectivity across the
licence. In addition to the 13.3 Bcf (2P) gross gas reserves
assigned to the Selva field, a CPR produced by geophysical services
consultancy, CGG Services (UK) Limited, estimated Selva's two
historic gas producing North Flank and South Flank reservoirs have
a 60% - 70% chance of holding gross contingent resources ('2C') of
14.1 Bcf. Outside Selva, there are four large prospects (East
Selva, Fondo Perino, Cembalina, and Riccardina), which are
estimated to hold aggregate gross prospective resources (best
estimate) of 91.5 Bcf.
"Our immediate priority in Italy is of course to bring Selva
into production. Once the permitting process has been completed,
the planned development is relatively straightforward and involves
initially installing a fully automated gas plant at the location of
the successful Podere Maiar 1dir well, along with a one-kilometre
long pipeline to connect the well with the nearby Italian National
Gas Grid. In all, the footprint of the planned Selva development
will be less than half a hectare and importantly will result in
zero emissions arising from any future gas production. At an
estimated net cost to Prospex of EUR400,000, bringing Selva into
production at an initial daily production rate of up to 150,000
cubic metres (5.3 mmscf/d) has an attractive payback profile, even
at today's subdued gas prices.
"When Selva comes on stream and subject to conclusion of
customary discussions with the regulator regarding the transfer of
El Romeral to our Spanish affiliate Tarba Energia, we will have
material interests in five producing wells, which combined have the
potential to produce over 7,800,000 scm net to Prospex in 2021.
This level of production will provide us with a cash flow
generative platform to further develop the portfolio, whether at El
Romeral, Selva, Suceava or Tesorillo.
"While timings may be pushed out by the ongoing COVID-19
pandemic and associated lockdowns, as has been the case with the
Selva gas field where first production is now expected in H1 2021,
a route map remains in place to monetise and maximise the value of
our asset base. I am therefore confident the year ahead will see
further progress made towards transforming Prospex into an energy
company that not only has a portfolio of diverse and stable revenue
streams, but also one that takes its ESG responsibilities
seriously."
* * 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
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
John Belliss 9427
Duncan Vasey Peterhouse Corporate Finance Tel: +44 (0) 20 7469
0932
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236
Cosima Akerman 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
AGMKKCBPFBKDKAB
(END) Dow Jones Newswires
June 30, 2020 02:00 ET (06:00 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