Ed Dawson, Managing Director of Prospex Energy explains why they've sold their Romanian assets
Episode 43, Oct 15, 2020, 12:02 PM
Ed Dawson, Managing Director of Prospex Energy #PXEN explains why they've sold their Romanian assets to focus on their Spanish & Italian gas projects.
Prospex Energy PLC, the AIM quoted investment company focused on European gas and power projects, is pleased to announce it has signed a sale and purchase agreement ('SPA') with H2Oil Limited ('H2Oil') regarding the sale of the entire issued share capital of the Company's wholly owned subsidiary, PXOG Massey Limited ('Massey'). Massey's sole asset is its 50% interest in the economic rights of the EIV-1 Suceava Concession, onshore Romania ('Suceava'). Under the terms of the SPA, the Company will receive up to £215,000 in cash in respect of historical debt owed to the Company by Massey and nominal consideration for shares in Massey of which 85% of the funds (£182,650) has already been received by Prospex.
Prospex Energy PLC, the AIM quoted investment company focused on European gas and power projects, is pleased to announce it has signed a sale and purchase agreement ('SPA') with H2Oil Limited ('H2Oil') regarding the sale of the entire issued share capital of the Company's wholly owned subsidiary, PXOG Massey Limited ('Massey'). Massey's sole asset is its 50% interest in the economic rights of the EIV-1 Suceava Concession, onshore Romania ('Suceava'). Under the terms of the SPA, the Company will receive up to £215,000 in cash in respect of historical debt owed to the Company by Massey and nominal consideration for shares in Massey of which 85% of the funds (£182,650) has already been received by Prospex.
The sale of Massey follows a strategic review by the Board of Prospex's portfolio of late stage European onshore gas projects, which was instigated at the time of the Company's acquisition of a 49.9% interest in the El Romeral gas and power project in Spain earlier this year. Following the sale of Massey, Prospex will concentrate on advancing its three core projects:
· The Podere Gallina Exploration Permit, onshore Italy where first production at the Selva gas field at an initial rate of up to 150,000 scm/day remains on course for H1 2021
· The El Romeral integrated gas and power project, onshore Spain where the Company is focused on increasing power generation at the existing 8.1 MW plant towards its 100% capacity via the drilling of low cost, low risk wells - operating at 100% capacity and selling electricity at Spain's historic average price of €70 per MWh (including subsidy) has the potential to generate annual revenues and profit before tax of €4.2 million and €2.4 million, respectively
· The Tesorillo Gas Project, onshore Spain where up to 830 Bcf of gas (Best Estimate) of gross un-risked prospective resources have been identified
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