TIDMPXEN
RNS Number : 1908Y
Prospex Energy PLC
05 September 2022
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
5 September 2022
Prospex Energy PLC
('Prospex' or the 'Company')
Successful Fund Raise of GBP500,000
Proceeds completes the funding of costs to first gas production
at the Selva Field
Prospex Energy PLC (AIM: PXEN), the AIM-quoted investment
company focused on European gas and power projects, is pleased to
announce that it has raised GBP500,000 via the issue of unsecured
Convertible Loan Notes ('the Loan Notes') to existing and new
investors ('the Subscribers').
Highlights
-- GBP500,000 raised via the issue of unsecured Convertible Loan
Notes of denomination GBP1 due end of March 2024.
-- Net proceeds completes the funding of the Company's share of
development costs (totalling c. GBP2.3 million, which includes
GBP200,000 of contingency) at the Selva gas discovery on the Podere
Gallina Permit, in the Po Valley in Italy, as well as providing
additional working capital to the Company.
-- The Loan Notes are convertible into new Ordinary Shares at a
price of 5.5p per ordinary share, the closing price on Friday 2
September 2022, at any time at the election of the investor.
Existing share authorities are sufficient to satisfy any potential
conversion of the maximum approved Loan Notes authority (of
GBP500,000) loan plus any accrued interest.
-- Interest at 15% is payable quarterly compounded monthly, with
the first interest payment on 30 September 2022 to be capitalised
and added to the loan principal rather than paid in cash.
-- Loan principal to be paid in three tranches (end of September
2023, end December 2023 and end March 2024). These repayment terms
mirror those of the GBP1.87 million convertible loan notes issued
in July 2022.
-- This debt/equity hybrid financing allows the Company to fund
the all the development costs to first gas at the Selva field,
which is targeted by Q2 2023.
Mark Routh, Prospex's CEO, commented:
"We are extremely pleased to have completed the financing to
first gas, together with providing additional working capital,
while the capital markets are still challenging.
"The proceeds of these Loan Notes combined with the loan notes
issued in July 2022 will be used to fund the Company's 37% share of
the development costs at the Selva gas discovery on the Podere
Gallina Permit in Italy and for general corporate purposes. The
Operator of the Podere Gallina licence in Italy, Po Valley Energy
(ASX:PVE) has pressed on with all procurement activities to ensure
that the schedule to first gas is not delayed.
"We remain on schedule for first gas from the Selva field in Q2
2023 where we predict substantial revenues to be generated from the
gas production. I would like to take the opportunity to thank our
existing shareholders for their continued support and welcome our
new Subscribers."
Further Information on the Subscribers and the Loan Notes
The GBP500,000 Loan Notes have been issued to three individual
subscribers. The new Loan Notes pay 15% interest quarterly,
compounded monthly, with the first quarterly interest payment on 30
September 2022 capitalised and added to the loan principal.
Quarterly cash interest payments will be made thereafter with the
first payment on 31 December 2022.
Unless converted into new Ordinary Shares at a price of 5.5p,
the principal is to be repaid in three equal capital repayments
scheduled on 30 September 2023, 31 December 2023, and 31 March 2024
which fits conservatively within the expected first production from
Selva in Q2 2023. These repayment terms mirror the schedule of
repayments of the convertible loan notes issued in July 2022.
The Company can elect to pay the interest in Euros by giving 10
business days' notice. The Company can elect, on a change of
control of the Company, where a single party has over 50% of the
issued share capital of the Company, to convert some or all of the
issued Loan Notes, including capitalised interest, into Ordinary
Shares at the lower of the 5.5p conversion price or the prevailing
market price. Accrued but unpaid interest may be paid in cash at
the time of conversion or added to the loan principal and converted
at the election of the Noteholder.
The Company can elect to repay the Loan notes in full or part at
any time by giving the noteholders 30 days' notice.
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 or contact the
following:
Mark Routh Prospex Energy PLC Tel: +44 (0) 20
7236 1177
Ritchie Balmer Strand Hanson Limited Tel: +44 (0) 20
Rory Murphy 7409 3494
Andrew Monk (Corporate Broking) VSA Capital Limited Tel: +44 (0) 20
Andrew Raca/Alex Cabral (Corporate 3005 5000
Finance)
Colin Rowbury Novum Securities Tel: +44 (0) 20
Jon Belliss Limited 7399 9427
Susie Geliher St Brides Partners Tel: +44 (0) 20
Ana Ribeiro Limited 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.
A bout 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 whilst Tarba waits on
permits to drill further infill wells on the concessions to
increase production. 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 (ASX:WGO). Tarba sells
electricity generated from the plant on the spot market in Spain.
The El Romeral licences comprise three contiguous production
concessions.
About Selva:
The Podere Gallina Licence is in the Po Valley region of Italy.
The licence contains the currently shut--in Selva gas-field as well
as exciting exploration opportunities. The Podere Maiar-1 well was
completed in December 2017 and successfully found a commercial gas
accumulation up-dip of the previous wells on the Selva field. The
Company now has a 37% working interest in the Podere Gallina
licence.
The Podere Gallina Licence holds independently verified 2P gross
reserves of 13.4 Bcf (5.0 Bcf net to Prospex at 37% WI), gross
Contingent 2C Resources of 14.1 Bcf (5.2 Bcf net) and a further
91.5 Bcf of gross Best Estimate Prospective Resources (33.9 Bcf
net).([1])
An independent Competent Person's Report of the Podere Gallina
Licence was prepared by CGG Services (UK) Limited in January 2019
on behalf of the joint venture.([1]) It attributed a total of 379
MMscm (13.4 Bcf) gross 2P reserves for the Selva redevelopment
project.
The CPR also attributed Best Estimate gross prospective
(un-risked) gas resources of 1,493 MMscm (52.7 Bcf) on the Podere
Gallina Licence in three separate structures.
References:
[1] Source : "Competent Person's Report Podere Gallina Licence,
Italy" prepared by CGG Services (UK) Limited in January 2019
https://bit.ly/3nZNfYf ].
Glossary:
scm Standard cubic metres
MMscm Million standard cubic metres
Bcf Billion standard cubic feet
MMscfd million standard cubic feet per day
Qualified Person Signoff
In accordance with the AIM notice for Mining and Oil and Gas
Companies, the Company discloses that Mark Routh, the CEO and a
director of Prospex Energy plc has reviewed the technical
information contained herein. Mark Routh has an MSc in Petroleum
Engineering and has been a member of the Society of Petroleum
Engineers since 1985. He has over 40 years operating experience in
the upstream oil and gas industry. Mark Routh consents to the
inclusion of the information in the form and context in which it
appears.
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END
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