LONDON (Alliance News) - Prospex Oil and Gas PLC Friday said its subsidiary, PXOG County, agreed a GBP490,000 loan deal with Hutton Energy Ltd, and made two investments.
Prospex has bought a 2.5% stake in Elephant Oil Ltd, or 587,120 shares for GBP100,000. Elephant Oil is a UK-based oil exploration company focused on onshore West Africa, with its primary asset an exploration block in Benin. Prospex said it has been following the company for a number of years and believes now is the ideal time to invest.
Elsewhere, it also bought 2,300 shares in Austria-headquartered OMV Aktiengesellschaft for EUR55,418. OMV is focused on Central Eastern Europe, the North Sea, the Middle East and Africa. Prospex said this investment is consistent with its strategy of being in a minority position in a quoted company with potential for growth and income.
Prospex said that, following changes at Poland's Ministry of Environment, a review of the licensing process has delayed a final signature on a number of pending licenses, including its Kolo license. As such, whilst the Kolo license has been agreed and offered, it is still waiting on the final execution of the license.
"We are pleased to be moving forward with our investments. Whilst the delay in the Kolo license is frustrating we take it as positive that the new Polish administration is addressing the matter in such a positive manner. Work on the ground has continued and this should allow rapid progress of the assets from this stage. We believe the further investments all reflect good opportunities to take the company forward and build out the investment portfolio," said Chairman Bill Smith in a statement.
Shares in Prospex Oil and Gas were up 45% at 2.00 pence Friday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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