("Prospex" or the "Company")
Acquisition of 17% interest in Proven Gas Permit in
Placing to raise
Update on Investment in
The Company also announces that it has raised
The Acquisition
The Permit contains the currently shut-in
Podere Gallina Permit: a proven play in a prolific hydrocarbon region
· Located onshore northern
· Holds the Selva Gas-Field (previously operated by ENI) ('Selva'), which produced 83 Bcf from Lower Pliocene gas sands before being shut-in in 1984, at which point it was still producing at >0.9Bcf per year
· Modelling work highlights the potential to recover undrained gas structurally updip from historic Selva wells
Significant near term development project at Selva
· The Podere Maiar-1d appraisal/redevelopment well ("Maiar-1d" or "the Well') is to be drilled into Selva in Q4 2017 to a total of 1,350 metres measured depth, targeting contingent resources (2C) of 17 Bcf. Excellent quality reservoir with 70+ m of sand and porosities over 27%
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· Limited additional capex required to put the Well on production in the event of success due to nearby infrastructure and minimal gas processing requirements - high methane (99%) / low liquids content of Selva gas
· The Operator, PVE, is highly experienced in developing similar sized gas projects in the Po Valley
· PVE will mobilise the Archimede HH Rig to site in the first weeks of November with a planned spud date of
Multiple exploration prospects identified
· East Selva - lies along the same play trend as the nearby Minerbio and
o Estimated 35 Bcf recoverable prospective resource - historic CPR by
o 3D Seismic acquisition has been proposed to mitigate high risk identified in the CGG CPR due to sparse seismic coverage
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o 3D seismic planned to further de-risk the prospect
o Estimated 14 Bcf recoverable prospective resource (Source:- CGG CPR)
· Cembalina, estimated 3.3 Bcf recoverable prospective resource (Source: - CGG CPR)
Acquisition Details
· Consideration of approximately
· Upon payment of the Consideration, a 17% interest in the Permit will be transferred to Prospex
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· Prospex to be a party to the Joint Operating Agreement along with PVE and United
Following the Acquisition, the interests in the Permit are PVE 63%, United 20% and Prospex 17%
Update on Investment in
Prospex is also pleased to provide an update on its investment in the Exploration Area of the EIV-1 Suceava Concession (the 'Concession' or 'Suceava'), which is located in a proven hydrocarbon basin in North East Romania. Prospex has a 50% interest in Suceava.
Prospex has been informed by the operator, Raffles Energy S.R.L. that the Weatherford 865 rig has not yet been released from drilling operations in the neighbouring block to the west. Once these operations are complete the rig will move and commence operations at Bainet-1. It is anticipated that the rig could be onsite in a couple of weeks, but exact timings remain dependent on the rig being released from its current operations.
"As demonstrated by today's Placing, we have a shareholder base that is highly supportive of our strategy to build a portfolio of investments in European onshore projects, which are located in proven plays; are close to infrastructure and markets; benefit from considerable historic data either via well logs or seismic analysis; offer a combination of development and exploration opportunities; and are low cost. We do not intend to stop with Podere Gallina and we continue to evaluate a number of additional projects that match our investment criteria. In the meantime, with operations on the Maiar-1d well due to commence before the end of the year, we are looking forward to working closely with the strong technical teams of
Further details on the Placing and Total Voting Rights
The Placing Price represents a discount of approximately 11 per cent to the mid-market closing price of the Company's Ordinary Shares on
Following Admission, the Company will have in issue a total of 1,013,593,136 Ordinary Shares. The Company has no shares in treasury, therefore the figure 1,013,593,136 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
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:
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Tel: +44 (0) 20 3766 0325 |
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Strand
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Tel: +44 (0) 20 7409 3494 |
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Tel: +44 (0) 20 7382 8300 |
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Peterhouse Corporate Finance
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Tel: +44 (0) 20 7469 0932 |
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Tel: +44 (0) 20 7236 1177 |
Notes
This information is provided by RNS