LONDON (Alliance News) - Investment firm Prospex Oil & Gas PLC on Monday said its Bainet gas field has begun producing gas, meaning the company is now revenue generating.
Prospex owns a 50% stake in Bainet, which is located on the EIV-1 Suceava concession in north-eastern Romania.
Gas produced from Bainet is being sold into the national grid at a price of around EUR6 per million cubic feet, Prospex added.
Non-Executive Chairman Bill Smith said: "The commencement of first gas production in Romania is a milestone event, which transforms Prospex into a revenue generative investment company.
"With multiple similar prospects already identified on the licence, each of which can be explored and developed at relatively low cost, Suceava represents an excellent, low risk opportunity to scale up our revenues."
Prospex also announced interim results on Monday, for the six months to June. There was no revenue, and its pretax loss narrowed to GBP540,761 from GBP2.8 million.
The company has two other assets. The Podere Gallina permit in Italy contains the Selva gas field, and Prospex hopes production to start in the first half of 2020.
Prospex's other site is the Tesorillo project in Spain's Cadiz province. It is early days at Tesorillo, but the firm believes its potential is "substantial".
Shares were 1.5% lower on Monday at a price of 0.37 pence each, having reached 0.48p in earlier trade.
