RNS12 Mar 2019 07:30
the operator has commenced work on putting the required permits in place.
Prospex's Non-Executive Chairman, Bill Smith, said, "With the addition of a look-a-like Bainet structure, the enlargement of the Suceava Concession immediately increases the inventory of low cost, low risk gas prospects already mapped on the licence. With a less than a year cycle between drilling, completion and production start-up, the rapid development of Bainet demonstrates Romania's credentials as a good jurisdiction to invest in. Thanks to a positive regulatory backdrop and the 'Can do Attitude' of the experienced operator, small but very meaningful accumulations can be developed to generate attractive returns, if they are close to infrastructure and costs are controlled. Based on our €400,000 share of costs to drill and complete the Bainet-1 well as a producer and excellent access to existing infrastructure, the Bainet look-a-like is one such opportunity which we hope will generate attractive returns for the partners.
"Further investment in our Romanian portfolio makes huge sense on both a standalone basis and part of prudent portfolio management, as we focus on generating multiple routes to quick, low risk cashflow. Combined with our 17% interest in the Podere Gallina licence onshore Italy, where we are working with our partners to bring the 13.3 bcf Selva Gas Field into production at a gross rate of 150,000 cubic metres / day in 2020, and our Tesorillo Project in Spain, where a technical work programme is underway to de-risk gross prospective resources of up to 2tcf of gas which includes an historic discovery, the value case for Prospex is clear.
"Furthermore, we continue to evaluate additional opportunities that match our investment criteria, specifically late stage European onshore projects with short timelines to value-generating activity, such as drilling. I look forward to providing further updates on our progress as we focus on monetising and growing our asset base and in the process generating significant value for our shareholders."
Competent Person Review
Carlos Venturini, Fellow of the Geological Society of London, Exploration Manager has reviewed and approved the technical information contained within this press release in his capacity as a qualified person, as required under the AIM Rules.