Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas
29 April 2022
Prospex Energy PLC
('Prospex' or the 'Company')
El Romeral: Income and Production Update
Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to provide an update on the production strategy of, and income from, the El Romeral power plant in southern
Highlights:
· Loan plus interest repayment made by Tarba to its two shareholders on 28 April 2022.
§ Loan repaid of
§ Tarba has now repaid in full its two shareholders, Prospex and Warrego Energy Ltd, the outstanding loans held in the El Romeral asset of
· The El Romeral power plant is now operating 24 hours a day seven days a week as its default operating mode, thereby boosting revenue.
Further information
As a direct result of continuing strong electricity prices, Tarba has repaid its outstanding debt to its two shareholders in full. Tarba repaid
The high income from electricity generation at the plant at near record prices has been augmented by the ability of the plant to run 24-hour operations. Having successfully run the plant since mid-March for 24 hours a day six days a week, the operational team and the subsurface technical team at Tarba have been working together closely to monitor the performance of the plant and the gas production with input from reservoir modelling. With the plant now fully automated, the Tarba executive management team has taken the decision to run the plant 24 hours a day, seven days a week as the default operating mode. Electricity generation can be suspended if needed when electricity pool prices drop below breakeven prices. This has happened rarely in recent months but with volatility in the spot price for electricity, the recent plant automation project has ensured that production and income can be fully optimised. Tarba has cash in hand of more than
Mark Routh, Prospex's CEO, commented:
"El Romeral continues to generate very healthy revenues with electricity spot prices at record levels. This full loan repayment by Tarba Energía to its two shareholders has been made possible not only by recent high electricity prices but also because of the successful implementation of the plant automation project executed in December last year, which has now resulted in 24/7 plant operations. Settling this debt cleans up Tarba's balance sheet and provides it with the financial flexibility to capitalise on further business development opportunities being worked up in and around the power plant.
"Tarba remains ready to increase its gas to power generation capacity at El Romeral as soon as the permits to drill a portfolio of infill wells on the El Romeral concessions are received. Achieving 100% output capacity could be realised from the first two infill wells. A further increase of the plant's generation capacity would be possible in parallel with the drilling programme.
"The current energy crisis has highlighted the need for long-term energy independence and security of supply, not only in
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of
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For further information visit www.prospex.energy or contact the following:
Mark Routh |
Prospex Energy PLC |
Tel: +44 (0) 20 7236 1177 |
Rory Murphy |
Strand Hanson Limited
|
Tel: +44 (0) 20 7409 3494 |
Colin Rowbury |
Novum Securities Limited |
Tel: +44 (0) 20 7399 9427 |
Duncan Vasey |
Peterhouse Capital Limited |
Tel: +44 (0) 20 7220 9797 |
Susie Geliher |
St Brides Partners Ltd
|
Tel: +44 (0) 20 7236 1177 |
Notes
Prospex Energy 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. The Company will rapidly scale up gas production in the short term to generate internal revenues that can then be deployed to develop the asset base and increase production further.
About El Romeral and Tarba
The El Romeral gas and power project in
The updated Corporate Presentation for Q2-2022 is available on the Company's website at https://bit.ly/3vhTXwL.
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