1st Mar 2021 11:03
Prospex Energy PLC - exploration investment company with core investments in Spain, Italy, and Romania - Completes acquisition of 50% interest in El Romeral gas & power project in Spain. Notes it acquired El Romeral, which includes three producing wells that supply gas, through its own network to a 100% project-owned 8.1 megawatts power station via Tarba Energia. Prospex owns a 50% interest in Tarba B shares, with partner Warrego Energy Ltd owning the remaining stake. Adds completion date was postponed from January 31. Says following completion, Tarba has assumed the day-to-day management and control of the project, and will look to implement short-term operational enhancements and efficiencies.
"For a net consideration of EUR375,000, the acquisition, in our view, represents excellent value. El Romeral, however, was not just acquired for the value on offer, but also for the potential to add value. Specifically, increasing operations at the power plant to 100% capacity from the current 22% level could generate annual revenues of EUR4 million. To reach this level of revenue generation, an increase in on site gas production is required," says Non-Executive Chair Bill Smith.
Current stock price: 2.15 pence, up 10% on Monday
Year-to-date change: down 2.3%
By Zoe Wickens; [email protected]
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