LONDON (Alliance News) - Prospex Oil & Gas PLC on Tuesday said two of its assets remain on course to achieve production in the near future with another asset also showing a "clear" investment case.
Prospex said the operator of the Suceava concession in Romania has secured land access for a pipeline connecting the Bainet-1 well discovery to the existing production facilities.
Further, front-end engineering and design work has been completed and permitting, procurement, and contractor selection are "well advanced". Prospex said the operator, Raffles Energy SRL, aims to bring Bainet-1 into production in the first half of 2018.
On the Tesorillo project in Spain work is ongoing to test known gas-bearing sandstone sequences. The operator, Schuepbach Energy Espania, is planning an audio magnetotellurics survey late in the first half of the year to evaluate subsurface geology.
Onshore Poland, Prospex said the 100%-owned subsidiary of investee Strezlecki Energy Holdings UK Ltd has decided not to extent the Kolo licence into a second exploration period.
Non-Executive Chairman Bill Smith said: "Prospex is a multi-project investment company and with production from the Bainet gas discovery in Romania on course to commence later this quarter and the Podere Maiar gas discovery in Italy due to come on stream within the next 18 months, our core investments contain multiple near-term value triggers.
"In addition, with gross unrisked prospective resources of up to two trillion cubic feet of gas, a historic gas discovery in a proven hydrocarbon region, and excellent access to nearby infrastructure, the investment case for Tesorillo is clear."
Smith added: "It is against this backdrop of high impact near-term activity across our core investments, in tandem with a thorough evaluation of the relevant data, that the board has decided to drop its interest in Kolo. This is an exciting period for Prospex and I look forward to providing further updates on our progress as we focus on realising the underlying value of our investments and in the process build a leading oil and gas investment company."
Shares were down 6.3% on Tuesday at 0.45 pence each.
