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
"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
"At El Romeral in
"Another prime candidate for follow-up activity is the Podere Gallina Permit in the Po Valley region of
"Our immediate priority in
"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."
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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 3494 |
Colin Rowbury John Belliss |
Novum Securities Limited |
Tel: +44 (0) 20 7399 9427 |
Duncan Vasey |
Peterhouse Corporate Finance
|
Tel: +44 (0) 20 7469 0932 |
Frank Buhagiar Cosima Akerman
|
St Brides Partners Ltd
|
Tel: +44 (0) 20 7236 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