Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil and Gas
1 July 2019
Prospex Oil and Gas Plc ('Prospex' or the 'Company')
Update on Bainet-2 Well,
Prospex Oil and Gas Plc, the AIM quoted investment company, has been advised by the operator, Raffles Energy S.R.L. ('Raffles'), that drilling operations at the Bainet-2 well ('Bainet-2' or 'the Well') in the Exploration Area of the EIV-1 Suceava Concession (the 'Concession' or 'Suceava'), North East Romania, have been completed. The Well spudded on 25 June 2019 and reached a total depth of 656 metres. Sarmatian sandstone was encountered by the Well in line with the pre-drill geological model, however, no commercially recoverable hydrocarbons were indicated on the logs. The operator has therefore advised the Company that the Well is to be plugged and abandoned. Prospex's wholly-owned subsidiary, PXOG Massey Limited, holds a 50% non-operated interest in the 984 sq km Concession with the balance held by Raffles.
The Bainet-2 well was targeting Bainet West, a look alike prospect to the Concession's Bainet gas field, which produces from Sarmatian sandstone reservoirs similar to other fields in and around Suceava. Bainet-2 encountered Sarmatian sandstone between 535 metres and 557 m of depth. A detailed post-drill technical review of all relevant well and seismic data will be conducted by the Company and its partner Raffles to determine the next steps at Suceava which, in addition to the producing Bainet field, contains multiple discoveries, prospects and leads that have been mapped on 2D seismic.
Operations at Bainet-2 will continue for some days. The cost of the Well, including plugging and abandoning, is estimated at
Prospex Non-Executive Chairman, Bill Smith, said, "Clearly the result of the Well is not what we were looking for, however, our first thoughts are to commend the operations team on the ground and our partner in the Concession on the drilling of Bainet-2 without incident, within budget and on schedule. Bainet-2 had a favourable risk / reward trade-off. However, as is the nature of oil and gas exploration, discoveries can only be made following success with the drillbit, regardless of the presence of a number of producing fields and historic discoveries on or around a licence, as is the case with Suceava.
"Importantly, the result of Bainet-2 has no bearing on the considerable asset backing behind the Company, specifically the 2.26 bcf 2P reserves and 2.40 bcf contingent resources assigned to our 17% interest in the soon to be producing Selva field, onshore
"In Spain work is underway to de-risk the huge resource base and identify suitable drilling locations. In
Qualified Person Review
Carlos Venturini, Fellow of the Geological Society of
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").
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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 Priit Piip
|
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