REG - Prospex Energy PLC - Spain: Project Helios Update

Prospex EnergyAnnouncement

03/05/2023 07:00

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RNS Number : 1842Y  Prospex Energy PLC  03 May 2023

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

 

3 May 2023

 

Prospex Energy PLC

('Prospex' or the 'Company')

 

Spain: Project Helios Update - Photovoltaic Hybridisation Project

to Increase Electricity Production by 60 percent

 

Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that the development
of the photovoltaic hybridisation solar project at the El Romeral power plant,
known as "Project Helios", which would increase output from the plant by up to
60%, is progressing well ahead of the final investment decision, which is
scheduled for consideration in June 2023.

 

 

Highlights

·    20 hectares adjacent to the El Romeral power plant has been leased for
25 years

·    The project to install an array of solar panels with a maximum power
output of 5MW peak, is out to tender with five companies based in Spain with
tenders expected to complete in early May 2023

·    Final Investment Decision ("FID") for the project is scheduled for
consideration in June 2023

·    Permitting, procurement and installation expected to take less than 12
months

·    Existing grid connection has 8.2MW output allocated to El Romeral
which is currently utilising just 2.7 MW

·    Further grid capacity is available to accept increased output with the
existing infrastructure

 

 

The El Romeral power plant is operated by Tarba Energía S.L. ("Tarba"), which
is based near Carmona east of Seville in the province of Andalusia, Spain.
 The power plant 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.  Hancock Energy is an active and supportive joint
venture owner in Tarba.

 

The plot of 20 hectares adjacent to the power plant has been leased for an
initial period of 2 years with a start date of 1 January 2023.  The first two
years are at the reduced rate of €800 per hectare per year with a break
clause should full permitting or FID not proceed in that timeframe.
 Thereafter once the project has received full authorisations the lease rate
for the next 25 years is at €2,000 per hectare per year adjusted for CPI
annually.  There is the option to extend the lease in increments of 10 years
after this date.

 

The El Romeral power plant produces electricity from natural gas produced from
the three contiguous El Romeral production concessions in the region which are
wholly owned by Tarba.  By developing Project Helios for the production of
electricity through photovoltaic solar energy, electricity production through
renewable energy would increase output from the plant by up to 60%.

 

The new project is a pioneer in the hybridisation of technologies, using the
resources and income from electricity generation from conventional natural gas
production to re-invest in renewable energy generation from a photovoltaic
plant.  The hybridisation will use the existing connection to the electricity
grid and is expected to provide sufficient energy to supply more than 20,000
homes.

 

The El Romeral power plant was recently declared a public utility by
resolution of the Junta de Andalucía.  This declaration comes with no
further liabilities and is testament to the good relations that Tarba has
built up with the local authorities and the community of Carmona.  This
recognition has been welcomed by Tarba and consolidates Tarba's long-term
commitment to the population of Carmona as a stable supplier of electricity to
the region.

 

Mark Routh, Prospex's CEO, commented:

"The existing connection to the national grid network operated by Red
Eléctrica de España at El Romeral is a significant asset.  Project Helios
will allow Tarba to increase its capacity for power export in the near term
alongside the capacity increase expected from drilling new gas wells on the
existing El Romeral production concessions.  A revision to the application to
drill new wells on the concessions was submitted in March 2023 and is now
proceeding through the Environmental Impact Assessment process as required by
the regulatory authorities.

 

"The investment in photovoltaic solar technology at Project Helios is due to
increase output at the plant by 60%, this alongside Tarba's natural gas power
plant marks an important step not only in the security of energy supply, but
also in the ecological transition process.  It is now widely acknowledged
that natural gas has a crucial role to play in both of these very current
issues."

 

* * 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)
 Colin Rowbury                                 Novum Securities Limited    Tel: +44 (0) 20 7399 9427

Jon Belliss
 Susie Geliher                                 St Brides Partners Limited  Tel: +44 (0) 20 7236 1177

Ana Ribeiro

 

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 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.  Tarba sells electricity
generated from the plant on the spot market in Spain.  The El Romeral
licences comprise three contiguous production concessions.

 

The El Romeral Power Plant at Carmona near Seville, Andalucía.

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