Prospex Eng Regulatory News (PXEN)

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

1 December 2021

Prospex Energy PLC

El Romeral: Update on plant optimisation project

Prospex Energy PLC, ('Prospex' or the 'Company') the AIM quoted investment company (AIM: PXEN) focused on European gas and power projects, provides an update on the El Romeral plant optimisation project in southern Spain, in which the Company holds a 49.9% working interest, through its interest in Tarba Energía.

The plant optimisation programme was delayed by computer technology supply chain issues which have since been addressed. The last items of equipment necessary to automate plant operations arrived to allow the plant automation upgrades to commence on 21 November 2021. After some technical issues were encountered with the installation of the new control systems and the completion of a run-in and optimisation programme, the plant upgrades have been successfully integrated. As a result of these actions the plant recommenced continuous stable electricity generation on 26 November 2021.

The El Romeral power plant can now be operated 24 hours a day, 7 days a week, switching between the two operational generators as required. Continuous operations resulting from this system optimisation project may allow an increase in power generation income of up to 65%. With the installation of the new remote monitoring and control systems, the plant can now be run with reduced manual intervention, thereby also reducing the overhead and the operational expenditure of the project. In addition to this, reservoir management is also optimised because a constant flow of gas from a gas well is preferable to shutting in production every week as the plant was hitherto not usually operational on a Sunday.

Mark Routh Prospex's CEO commented:

"Whilst it is frustrating that the global semiconductor supply shortages delayed the start of this optimisation programme, I am very pleased to report that the project has now completed safely and on budget. We will of course continue to monitor the performance of the plant and the gas reservoirs very closely and will record the performance statistics of the expected increased power generation capacity, which I expect to share at the next operational update."

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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