REG - Prospex Energy PLC - 10-year Licence Extension Granted on El Romeral

Prospex EnergyAnnouncement

25/07/2024 07:15

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RNS Number : 8081X  Prospex Energy PLC  25 July 2024

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

 

25 July 2024

 

Prospex Energy PLC

("Prospex" or the "Company")

 

Spanish Government Grants 10 -year Licence Extension

on El Romeral Production Concessions

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that the Spanish
regulatory authority has granted a ten-year extension, to July 2034, to the
natural gas production concessions owned by Tarba Energía S.L. ("Tarba")
known as El Romeral 1, 2 & 3 from which Tarba generates electricity from
its own natural gas production.

The Royal Decree was signed on 24 July 2024 allowing the Ministry for
Ecological Transition and the Demographic Challenge (MITECO) to grant the
extension of the natural gas exploitation concessions "El Romeral 1, 2 and 3"
for ten years, the maximum allowable term, thus guaranteeing electricity
supply to the grid until at least July 2034, when the concessions may be
extended for a further ten-year period, reaching 2044.

Tarba's electricity production plant in Carmona near Seville was declared a
Public Utility by the Andalusian Regional Government at the beginning of 2023
and is the only facility in Spain that converts electricity from natural gas
at the same location as the gas is extracted from the subsurface.

Applications to permit the five well drilling campaign on the concessions is
already with MITECO for permitting approval.

The El Romeral power plant is operated by Tarba, which is based near Carmona
east of Seville in the province of Andalucía, Spain.  The El Romeral asset
is co-owned through Tarba by Prospex which has a 49.9% working interest and
Warrego Energy Limited which has a 50.1% working interest.  Warrego Energy is
now wholly owned by Hancock Energy (PB) Pty Ltd in Perth Western Australia.

Tarba is pioneering a new hybridisation model that combines natural gas and
solar energy as sources for electricity generation in the ecological
transition process by developing a project to produce 5MW electricity using
photovoltaic solar energy ("Project Helios").

In 2023, Tarba supplied enough energy to cover the electricity consumption of
approximately 6,700 homes in the area, even when operating the facility at one
third of its capacity.  With future wells to be drilled on the concessions,
the plant is expected to reach its maximum nameplate production capacity to
sell 8.1MW of power into the grid.  The combination of further natural gas
extracted from the concessions and the new photovoltaic generation is expected
to cover the energy supply of 20,100 homes.

 

Mark Routh, Prospex's CEO, commented:

"The official extension of the El Romeral production concessions for the
maximum allowable term of ten years, is a very welcome step by the Spanish
regulatory authorities.  It is also an important official acknowledgement by
the Spanish state of the crucial role natural gas will continue to play in the
nation's energy security and the ecological transition process.

"It is important to highlight that the El Romeral power plant will reach full
output capacity from production of just two of the proposed five wells.  Any
extra gas from the remaining new wells or any future wells drilled on the
concessions will facilitate expansion plans at the power plant as well as the
ability to supply natural gas directly to the grid or to the local market in
Andalucía."

 

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.

 

* * ENDS * *

 

For further information visit www.prospex.energy (http://www.prospex.energy)
or contact the following:

 

 

 Mark Routh                                      Prospex Energy PLC            Tel: +44 (Tel:+44) (0) 20 7236 1177
 Ritchie Balmer                                  Strand Hanson Limited         Tel: +44 (0) 20 7409 3494

Rory Murphy
 Andrew Monk (Corporate Broking)                 VSA Capital Limited           Tel: +44 (0) 20 3005 5000

Andrew Raca / Alex Cabral (Corporate Finance)
 Ana Ribeiro / Charlotte Page                    St Brides Partners Limited    Tel: +44 (0) 20 7236 1177

 

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 gas to an 8.1MW power plant near Carmona in Southern Spain is owned
and operated by Tarba.  It is currently operating at about 30% of its full
capacity because Tarba is waiting on permits to drill five further infill
wells on the concessions to increase production.  Tarba is already
categorised as a hybrid energy provider with the successful installation of
photovoltaic panels on the roof of the plant in August 2022.  Prospex owns a
49.9% working interest in the El Romeral project via Tarba.  The remaining
50.1% working interest is owned by Warrego Energy Limited now wholly owned by
Hancock Energy (PB) Pty Ltd in Perth Western Australia.  Tarba sells
electricity generated from the plant on the spot market in Spain.  The El
Romeral licences comprise three contiguous production concessions.

 

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