Prospex Eng Regulatory News (PXEN)

Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas

6 May 2022

Prospex Energy PLC

('Prospex' or the 'Company')

Appointment of VSA Capital as Corporate Broker

Prospex Energy PLC, the AIM quoted investment company focused on European gas and power projects, is pleased to announce the appointment of VSA Capital Limited ('VSA Capital'), effective immediately, as Joint Financial Adviser and Joint Corporate Broker to the Company.

As part of an enhanced package of services VSA Capital will, among other things, initiate research on Prospex, with periodic updates on corporate developments and assist with the Company's market communications.

VSA Capital is acting in a Joint Corporate Broker capacity alongside Novum Securities Limited.

Mark Routh, Prospex's CEO, commented:

"We are extremely pleased to be taking on VSA Capital as our joint corporate broker and joint financial adviser. VSA Capital will provide the Company with an enhanced package of services including the preparation of an analyst's research note on the Company for our existing and potential investors. 

"VSA Capital will also provide Prospex with invaluable market intelligence and specialist financial advice in the energy and resources sector, generally enhancing the Company's investor relations and market reach. I am excited to be working closely with the team at VSA Capital in the coming months as we transition to increase natural gas production in the near term from our existing asset portfolio in both Italy and Spain."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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For further information visit www.prospex.energy or contact the following:

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 Spain, with gas production wells supplying natural gas to an 8.1MW power plant near Carmona in Southern Spain is owned and operated by Tarba Energía SL ('Tarba'). It is currently operating at about 20% of its full capacity because Tarba is waiting on permits to drill further infill wells on the concessions to increase production. Prospex owns a 49.9% working interest in the El Romeral project via Tarba. The remaining 51.1% working interest is owned by Warrego Energy Limited (ASX:WGO). Tarba sells electricity generated from the plant on the spot market in Spain. Current spot market prices have reached all-time highs in recent months. The El Romeral licences comprise three contiguous production concessions.

About Selva:

The Podere Gallina Licence is in the Po Valley region of Italy. The licence contains the currently shut‑in Selva gas-field as well as exciting exploration opportunities. The Podere Maiar-1 well was completed in December 2017 and successfully found a commercial gas accumulation up-dip of the previous wells on the Selva field. The Company now has a 37% working interest in the Podere Gallina licence.

The Podere Gallina Licence holds independently verified 2P gross reserves of 13.4 Bcf (5.0 Bcf net to Prospex at 37% WI), gross Contingent 2C Resources of 14.1 Bcf (5.2 Bcf net) and a further 91.5 Bcf of gross Best Estimate Prospective Resources (33.9 Bcf net).

An independent Competent Person's Report of the Podere Gallina Licence was prepared by CGG Services (UK) Limited in January 2019 on behalf of the joint venture.[1] It attributed a total of 379 MMscm (13.4 Bcf) gross 2P reserves for the Selva redevelopment project.

The CPR also attributed Best Estimate gross prospective (un-risked) gas resources of 1,493 MMscm (52.7 Bcf) on the Podere Gallina Licence in three separate structures.

References:

[1] Source: "Competent Person's Report Podere Gallina Licence, Italy" prepared by CGG Services (UK) Limited in January 2019 https://bit.ly/3nZNfYf].

Glossary:

scm Standard cubic metres

MMscm Million standard cubic metres

Bcf Billion standard cubic feet

Qualified Person Signoff

In accordance with the AIM notice for Mining and Oil and Gas Companies, the Company discloses that Mark Routh, the CEO and a director of Prospex Energy plc has reviewed the technical information contained herein. Mark Routh has an MSc in Petroleum Engineering and has been a member of the Society of Petroleum Engineers since 1985. He has over 40 years operating experience in the upstream oil and gas industry. Mark Routh consents to the inclusion of the information in the form and context in which it appears.

The updated Corporate Presentation for Q2-2022 is available on the Company's website at https://bit.ly/3vhTXwL.