8 Jan 2018 14:00
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil and Gas
8 January 2018
Prospex Oil and Gas Plc
('Prospex' or the 'Company')
Placing to Raise £1.2 million
Prospex Oil and Gas Plc, the AIM quoted investment company, is pleased to announce that it has raised £1,200,000 gross via an oversubscribed placing of 200,000,000 ordinary shares of £0.001 each (the "New Ordinary Shares") at a price of 0.6 pence per New Ordinary Share (the "Placing Price") (the "Placing").
The net proceeds of the Placing ensure Prospex is fully funded for its basic 2018 work programmes across its portfolio of investments in late stage European onshore oil and gas projects. 2018 will include flow testing of the Podere Maiar well in the Po Valley region of Italy in Q1 2018; the likely commencement of production at the Bainet gas discovery on the Suceava concession in Romania in Q2 2018; and work to further delineate a gas discovery at the Tesorillo Project in southern Spain which has been independently assigned unrisked prospective resources of 830 Bcf (Best Estimate), with upside in excess of 2 Tcf.
Prospex Non-executive Chairman, Bill Smith, said, "The funds raised today enable us to build on the success we enjoyed in 2017. This saw us acquire material interests in three European onshore projects, participate in the drilling of three wells, and by the end of the year make two gas discoveries. From the outset, our objective has been to consistently provide our shareholders with exposure to multiple value trigger events. With flow testing of our gas discovery in Italy expected to commence shortly, followed by first gas production from the Bainet discovery in Romania, H1 2018 will not be short of high impact newsflow. In tandem with this, we are actively working to add to our portfolio and, where we can, accelerate the exploitation of additional opportunities identified within our existing investments. The year ahead promises to be an exciting one for Prospex. I look forward to providing updates on our progress, as we look to maintain the strong momentum behind the Company."
Admission to Trading on AIM
The New Ordinary Shares will rank pari passu with the existing Ordinary Shares. Application will be made for the New Ordinary Shares to be admitted to trading on AIM ("Admission") and Admission is expected to occur on 22 January 2018.
Following Admission, the Company will have in issue a total of 1,213,593,136 Ordinary Shares. The Company has no shares in treasury, therefore the figure of 1,213,593,136 should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
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For further information visit www.prospexoilandgas.com or contact the following:
Edward Dawson | Prospex Oil and Gas Plc | Tel: +44 (0) 20 3586 1009 |
Rory MurphyRitchie BalmerJack Botros
| Strand Hanson Limited
| Tel: +44 (0) 20 7409 3494 |
Jon Belliss | Beaufort Securities Limited | Tel: +44 (0) 20 7382 8300 |
Lucy Williams Charles Goodfellow Eran Zucker
| Peterhouse Corporate Finance
| Tel: +44 (0) 20 7469 0932 |
Frank Buhagiar Charlotte Page
| St Brides Partners Ltd
| Tel: +44 (0) 20 7236 1177 |
Notes
Prospex Oil and Gas 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 management acquires 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.