Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil and Gas
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Placing to Raise
Prospex Oil and Gas Plc, the AIM quoted investment company, is pleased to announce that it has raised
Use of Proceeds
As previously announced, El Romeral is being acquired by Tarba Energia S.L ("Tarba") which is jointly owned by Prospex and Warrego Energy Limited ("Warrego"). Warrego funded the initial consideration of
Following the Placing, Prospex will elect to participate with a 49.9% interest in the Project and will therefore refund to Warrego the corresponding proportion of the initial consideration (
El Romeral includes three production licences on which three wells supply gas to a Project-owned 8.1 MW power station. The acquisition of a 49.9% interest in El Romeral will therefore lead to a step-up in Prospex's production profile to five producing gas wells, which have the potential to generate over 9,000,000 scm net in 2021. In addition to the three producing wells at El Romeral, Prospex has a 50% interest in the Bainet-1 well on the Suceava Concession in
El Romeral offers significant development upside to increase gas production and, in turn, electricity generation at the Project's plant, which was constructed in 2001-2002 at a cost of c.
The proceeds of the Placing will also go towards funding the 2020 work programme planned for Prospex's 15%-owned 830 Bcf Tesorillo gas project in
Directors' Dealing
As part of the Placing, Edward Dawson, CEO, Bill Smith, Non-Executive Chairman, and James Smith, Non-Executive Director, have agreed to acquire the following number of Placing Shares:
|
No. of Placing Shares acquired |
Resultant no. of Ordinary Shares |
% of Enlarged Issued Share Capital (as enlarged by the Placing) |
Edward Dawson |
50,000,000 |
55,272,919 |
2.50% |
Bill Smith |
33,333,333 |
42,472,677 |
1.92% |
James Smith |
33,333,333 |
43,333,333 |
1.96% |
Edward Dawson, Bill Smith and James Smith, as Directors of the Company, are classified as related parties under the AIM Rules for Companies and their participation in the Placing therefore constitutes a related party transaction.
Accordingly, Richard Mays, being the only Director of the Company not participating in the Placing, having consulted with Strand Hanson, the Company's nominated adviser, considers that the participation of Edward Dawson, Bill Smith and James Smith in the Placing is fair and reasonable insofar as the Company's shareholders are concerned.
Prospex Non-executive Chairman, Bill Smith, said, "Securing these funds at close to market prices from new and existing shareholders and certain members of the Board represents an endorsement of the low risk, low cost opportunity that El Romeral offers to build material production and revenues. Thanks to this Placing, Prospex is able to elect to acquire a 49.9% interest in Romeral. Following this, and once the Podere Maiar-1 well in
"Prospex is not just a value play, however. Significant upside has been identified across our portfolio including at the Tesorillo Project in
Admission to Trading on AIM and Total Voting Rights
The Placing Shares will rank pari passu with the existing Ordinary Shares. Application will be made for the Placing Shares to be admitted to trading on AIM ("Admission") and Admission is expected to occur on or around 11 February 2020.
Following Admission, the Company will have in issue a total of 2,213,593,136 Ordinary Shares. The Company has no shares in treasury, therefore the figure of 2,213,593,136 should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
Following the Placing, Mr Simon Chantler will hold 239,666,667 Ordinary Shares, representing 10.83 per cent. of the Company's issued share capital as enlarged by the Placing.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
* * 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 3494 |
Colin Rowbury Jon Belliss |
Novum Securities Limited |
Tel: +44 (0) 20 7399 9427 |
Duncan Vasey Lucy Williams
|
Peterhouse Capita Limited
|
Tel: +44 (0) 20 7220 9797 |
Frank Buhagiar Priit Piip
|
St Brides Partners Ltd
|
Tel: +44 (0) 20 7236 1177 |
Notes
Prospex Oil and Gas Plc is an AIM quoted investment company focused on high impact onshore and shallow offshore European opportunities with short timelines to production. The Company's management acquires 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.
PDMR Notifications
1. |
Details of the person discharging managerial responsibilities / person closely associated |
|||||
a) |
Name |
1. Bill Smith 2. James Smith 3. Edward Dawson |
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2. |
Reason for the Notification |
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a) |
Position/status |
1. Non-Executive Chairman 2. Non-Executive Director 3. CEO and Managing Director |
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b) |
Initial notification/amendment |
Initial notification |
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3. |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
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a) |
Name |
Prospex Oil and Gas plc |
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b) |
LEI |
213800NY9RH8O1B72D27 |
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4. |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv)each place where transactions have been conducted |
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a) |
Description of the Financial instrument, type of instrument |
Ordinary Shares of 0.1p |
||||
Identification code |
GB00BW4NPC58 |
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b) |
Nature of the Transaction |
Purchase of ordinary shares |
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c) |
Price(s) and volume(s) |
|
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d) |
Aggregated information Aggregated volume / price |
Aggregate volume: 116,666,666 Aggregated price: |
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e) |
Date of the transaction |
30 January 2020 |
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f) |
Place of the transaction |
London Stock Exchange, AIM |
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