CEO, Edward Dawson said he is confident that 2020 will see the company transform into an energy company “with a portfolio of diverse and stable revenue streams, but also one that takes its ESG responsibilities seriously."
In an AGM statement released today, Dawson outlined the group’s recent efforts to forge a portfolio of onshore European projects at different stages which cover the entire energy cycle, which he said is reflected through the company’s name change to Prospex Energy Plc.
Dawson said the name change was in line with the company’s commitment to its Environmental, Social and Governance ('ESG') obligations as it remains on course to become a 49.9% owner of an 8.1 MW power station that sells electricity to the Spanish grid.
"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,” Dawson commented.
Currently, Prospex has a producing gas field in Romania, an integrated gas and power project in Spain and a gas discovery in Italy that is expected to come online in the first half of 2021.
In addition, the group holds a large-scale exploration / appraisal project in southern Spain that Dawson says has the potential to hold up to 830 Billions of standard cubic feet of gas (Bcf).
"It is no coincidence that all our projects target gas as opposed to oil,” said Dawson who believes all projects will offer opportunities to grow the company’s number of gas fields.
Shares in Prospex Oil & Gas are trading down 20% this morning.
The group specified in this morning’s annoucement that “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.”
"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,” he said.
Dawson said it 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,” he said
“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.”
He added, "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.”
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