Prospex eyes Italian field start-up mid-2022
Prospex Energy – as Prospex Oil & Gas is now called – hopes to bring on stream the Po Valley-operated Selva gas field in Italy into production at an initial rate of up to 150,000 m³/day in about a year's time, it said announcing its full-year results June 25.
It said it has made "significant progress" with production concession permitting, having had full environmental approval from the government. It is preparing documentation in support of application for a full production licence and advancing discussions with potential non-equity funders for its €580,000 ($693,000) share of Selva development costs.
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At El Romeral, onshore Spain, the permitting process is underway for a multi-well drilling programme targeting low risk opportunities to increase gas supply to its wholly owned power plant, now constrained to operating at about 22% capacity owing to current wells' tail production. It is working on two development locations with 5bn ft³ of gross contingent resources at 11 prospects with 90bn ft³ of gross, un-risked prospective resources with over 70% chance of success in most cases.
Full capacity at the plant can be achieved with one successful new well coming on stream which, combined with selling electricity at Spain's historic average price of €70/MWh including subsidy could generate project level financials (on a gross basis) of €4.2mn annual revenues and a pre-tax profit of €2.4mn.
It has also sold its 50% interest in the economic rights of the EIV-1 Suceava Concession onshore Romania for up to £215,000 ($299,000) in cash,
CEO Edward Dawson said: "Prospex has emerged from what has been a highly challenging year with strong asset backing in the form of total assets of £5,748,211, a focused portfolio of investments following the acquisition of El Romeral and the disposal of Suceava, and with its roadmap to build a highly cash generative, ESG focused, gas and power investment company very much intact.
"Having recently completed the acquisition of a 49.9% interest in the vertically integrated El Romeral gas and power project in Q1 2021, the permitting process is underway for a multi-well drilling programme, potentially commencing in 2022, targeting an increase in gas production and electricity generation at the 100% project-owned power plant.
"As a result, we have two independent work programmes ongoing, each of which have the potential to generate material revenue streams for Prospex in 2022 and beyond. These revenues will in turn be reinvested in the multiple follow-up opportunities that have been identified on our licences in Italy and Spain to grow the company further and, in the process, build Prospex into a European energy supplier, one with visible and stable earnings and one with a focus on cleaner natural gas."