Prospex Energy PLC Tesorillo Project Update (9847M)
27 Septiembre 2021 - 1:00AM
UK Regulatory
TIDMPXEN
RNS Number : 9847M
Prospex Energy PLC
27 September 2021
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
27 September 2021
Prospex Energy PLC
Tesorillo Project Status and Exploitation Concession
Application
Prospex Energy PLC, ('Prospex' or the 'Company') the AIM quoted
investment company (AIM:PXEN) focused on European gas and power
projects, reports on the progress that its joint venture company
Tarba Energía S.L. ("Tarba") has made with respect to recent
legislation changes in Spain and its possible effect on its
Tesorillo exploration permit in southern Spain.
Highlights
-- Application to convert Tesorillo into an exploitation
concession was submitted to the relevant authorities before Spain's
Act 7/2021 on Climate Change and Energy Transition (the "Climate
Change Act") came into force.
-- Specialist legal advice received by Tarba confirms that
applications from existing permits prior to the Climate Change Act
coming into force maintain their validity under the new law.
-- Tarba's application is being considered by the regulators at
a time of significantly rising prices for gas and LNG imports in
Spain, which the Board believes should work in the Company's
favour.
-- The El Romeral exploitation concessions at which Tarba
operates its gas to power plant are in force and unaffected by the
Climate Change Act.
The Tesorillo Project in the Cadiz province of Southern Spain
comprises two petroleum exploration permits, the Tesorillo and
Ruedalabola Permits that were approved as a joint investigation
programme. The Tesorillo Project covers 94,000 acres and includes a
known gas discovery at the Almarchal-1 well. The Tesorillo Project
is estimated to contain 831 Bcf gross unrisked prospective
resources on a best estimate basis and has excellent proximity to
pipelines and infrastructure. (Best Estimate Prospective Resource
assessment independently verified by Netherland, Sewell and
Associates - 5 May 2015.)
On 22 May 2021, Spain's Act 7/2021 on Climate Change and Energy
Transition came into force. Whilst the new legalisation states that
no new hydrocarbon permits or licences will be granted in Spain, it
specifically excluded existing permits, including applications from
existing permits to convert into an exploitation concession.
In advance of the enactment of this law, Tarba sought specialist
legal advice in Spain. Based on this advice, an application was
submitted to convert the vast majority of the existing Tesorillo
Project to an exploitation concession. This application was
submitted to MITECO on 12 May 2021 together with a field
development plan for approval and all of the necessary supporting
documents. The application was submitted before the Climate Change
Act came into force. The outcome of this application will not be
known for some time.
The Tarba team has continued to liaise with various government
agencies to progress drilling and environmental approvals for both
El Romeral and for Tesorillo. Tarba is targeting conventional
sandstone gas reservoirs. There are no financial or drilling
commitments attached to the Tesorillo Project Exploitation
Concession application.
Mark Routh Prospex's CEO commented:
"In communicating with shareholders over the past few months, we
felt the need to clarify our position with Tesorillo in light of
the recent legislative changes taking place in Spain and offer
reassurance on the steady progress being made. This comes as a
direct result of a successful collaboration between the existing
joint venture parties in Tarba during an ongoing delicate
application process with local and national authorities."
"We are ever mindful of the environmental impact of our
activities in the region and the need to balance this against the
current economic situation where gas is in short supply. To put
things in context, local indigenous onshore gas production in Spain
has a carbon footprint which is ten times lower than the
importation of LNG from the USA and at a substantially lower
delivered cost. With this in mind, the Tesorillo Project has the
potential to become a world class gas production asset and a model
for the energy transition process."
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
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
Duncan Vasey Peterhouse Capital Limited Tel: +44 (0) 20 7220
9797
Susie Geliher St Brides Partners Ltd Tel: +44 (0) 20 7236
Catherine Leftley 1177
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