REG - Prospex Energy PLC - Prospex to Expand into Third European Country

Prospex EnergyAnnouncement

04/10/2024 07:00

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RNS Number : 8966G  Prospex Energy PLC  04 October 2024

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

 

4 October 2024

 

Prospex Energy PLC

("Prospex" or the "Company")

 

Prospex to Expand into Third European Country

Following the Successful Qualification to Apply for Licences in Poland

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that it has qualified
to apply for onshore open acreage hydrocarbon exploration licences in
Poland.  In March 2024, Prospex incorporated PXEN Tatra, a 100% owned
subsidiary and on 21 May 2024 applied to the regulator in Warsaw for the
pre-qualification to apply for licences.  On 3 October 2024 Prospex
officially secured the qualification to apply for licences in Poland.

 

Prospex has identified and hopes to acquire prospective blocks in Poland,
which meet the Company's stringent investment criteria; namely, areas which
have proven gas production, high potential prospectivity in the targeted
geological horizons, high potential for new reserves to be unlocked and can be
brought onstream within two to three years.  Details of the new licence areas
will be made public when the official applications are publicly gazetted after
the submission to the Ministry of Climate and Environment which is expected
before the end of October 2024.  Licence applications will be submitted
initially based on 100% working interest and if successful, Prospex expects
the licences to be granted by Q1 2025.

 

Mark Routh, Prospex's CEO, commented:

"After several months of preparation, I am very pleased to announce that
Prospex is applying for licences to search for and develop onshore natural gas
in a third European nation.  Poland is well known for its hydrocarbon
resources and has a regulatory regime which is supportive of natural gas
investment with a track record in quickly approving permits for hydrocarbon
exploitation activities as the nation focusses on its security of energy
supply.

 

"There are several reasons for choosing to expand into Poland, aside from the
favourable regulatory environment and prospective hydrocarbons, one of them
being our experience in country.  The Prospex senior team has valuable prior
exploration experience in Poland and is very familiar with the regional
geology and importantly, the regulatory environment.  During the operational
phase in 2016 Prospex met all local regulatory commitments, which puts the
Company in a good position to leverage the experience and relationships gained
at that time.

 

"The Prospex technical team has identified attractive onshore areas for the
application and we hope to be able to announce a positive outcome from the
applications in Q1 2025.

 

"The Company's strategy is to add additional geographic reach to the existing
portfolio of producing assets in a cost-effective manner.  The Company's
entry into Poland has been financed entirely from production income.

 

"I look forward to updating shareholders on progress with these applications
in the coming months."

 

Details on the Application Process

In November 2023, the Board approved implementation of a low-cost plan to
apply for licences in Poland.  The Prospex technical team visited the
dataroom at the Polish Geological Institute in Warsaw during the second week
of January 2024 to identify the optimum blocks for which to apply.

 

In February 2024 an established local geo-technical firm was engaged to
prepare the technical geological work programmes for the licence applications.
 The geological work programmes include maps, cross-sections and graphics,
which comply with the standards required by Polish Geological and Mining law.

 

In March 2024, Prospex registered a wholly owned subsidiary company called
PXEN Tatra Spółka Z Ograniczoną Odpowiedzialnością ("PXEN Tatra") or PXEN
Tatra Sp. Z o. o. (which translates to PXEN Tatra Limited Liability
Company).  The company has been named after the Tatra National Park and the
Tatra mountain range in southern Poland, which form a natural border between
Slovakia and Poland.

 

In the early months of 2024 Prospex identified prospective onshore areas which
have passed the rigorous vetting process by the Prospex technical team.
 Namely: areas which have proven gas production, high potential prospectivity
in the targeted geological horizons, high potential for new reserves to be
unlocked and can be brought onstream quickly, possibly within two to three
years.  Applying these criteria, the team worked up geological work
programmes and PXEN Tatra expects to submit the applications to the central
Ministry of Climate and Environment in Warsaw for the licence areas before the
end of October 2024.  After submission, details of the applications will be
publicly gazetted at which point details of the application blocks will be
disclosed.  The licence applications will be submitted with PXEN Tatra
initially having 100% working interest, and should such applications be
successful, and in line with the AIM Note for Investing Companies, the
Company's primary strategy will be to establish joint ventures to manage and
operate the blocks.

 

In order to manage the applications, in April 2024 PXEN Tatra engaged an
experienced Country Manager in Poland.  Prospex already has a consultant
Reservoir Geologist based in Poland who is an integral part of Prospex's
technical team, so this natural expansion of the team ensures that we can
manage operations effectively.

 

On 21 May 2024 PXEN Tatra submitted the pre-qualification to operate and to
apply for licences to the Ministry of Climate and Environment in Warsaw.
That pre-qualification involves demonstrating the technical capability and
financial capacity of Prospex to own licences and is a necessary step prior to
any licence application.  PXEN Tatra's pre-qualification was approved on 3
October 2024 and the licence applications are expected to be submitted
directly afterwards before the end of October 2024.

 

The award of the blocks will be based upon the proposed geological and
geophysical work programmes and the work commitments.  PXEN Tatra will
propose an appropriate work programme in order to achieve licence award and
maximise the chances of success of commercial discoveries.  Details will be
disclosed when the licence applications are made public.  Licence awards
could happen in Q1 2025.

 

Prospex is signing an LOI with AGH University of Kraków to enhance
cooperation and communication with the Department of Geology giving the
Company access to high-powered academic capability.

 

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 (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

 

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