Prospex's Spanish Gas Deal on Track to Close Feb 28
London-listed Prospex Energy has said it expects to close the acquisition of El Romeral, an integrated gas production and power station project in southern Spain, on February 28.
The company first announced the deal in December 2019, which will see Prospex take a 49.9% stake in the project and Australia's Warrego Energy a 50.1% position through their joint venture Tarba Energia. The seller is Petroleum Oil and Gas Espana.
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The pair secured approvals from Spanish authorities near the end of last year. Prospex had hoped to close the purchase on January 31, but "slower than anticipated progress" this year means completion is now expected on February 28, the company said on February 11. Tarba will use the time to prepare for a smooth transfer of operations.
El Romeral comprises three licence areas hosting three wells that supply gas to a 8.1-MW power station. There is also "significant" development potential, according to Prospex, with the acreage containing two development locations and 11 very-low risk prospects with gross contingent and prospective gas resources of 5bn ft3 and 90bn ft3 respectively.
Prospex's plan is to ramp up gas production by drilling new wells and potentially working over existing ones. In turn, it aims to boost electricity generation. The power plant currently operates at only 22% utilisation.