Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas
17 March 2022
Prospex Energy PLC
('Prospex' or the 'Company')
Production Strategy at El Romeral Power Project
Prospex Energy PLC, the AIM quoted investment company focused on European energy projects, is pleased to provide an update on the production strategy from its El Romeral power project near Carmona in
The owners of Tarba (Prospex and Warrego Energy Limited) have agreed to operate the El Romeral power plant 24 hours per day for six days per week until further notice. The reservoir performance and the operating regime are being monitored closely and the Tarba management is confident that the right balance is being achieved between ultimate recovery of remaining reserves and maximising electricity output and therefore income at this time.
Over the last two weeks the power plant has been successfully operating 24 hours a day, six days a week securing the recent high electricity prices. The power-plant automation and operational procedures have now been fully tested to enable continuous operation whenever required.
Currently Tarba has cash in hand of more than
The reservoir modelling work by Tarba will continue to forecast gas production profiles from the El Romeral concession using a suite of production strategies including further sensitivities on rates, pressures and ultimate recoveries. The production strategy will be regularly reviewed and optimised based on sound reservoir management.
Mark Routh, Prospex's CEO, commented:
"The El Romeral concession has been producing gas for the power plant for twenty years and it was essential that the rate of production decline was thoroughly understood before instigating continuous plant operations. We now know that continuous operations are feasible and safe. I am very proud of our management and operating team at the plant who have embraced this new operating regime which was made possible by the success of the plant upgrades installed last December."
"We have selected the optimum production strategy based on the latest reservoir modelling which strikes the right balance between maximising recovery and optimising electricity production at this crucial time for the supply of energy 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 Q1-2022 is available on the Company's website at https://bit.ly/3G6JtCm.
[1] Forward curve electricity prices in
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