24th Dec 2020 10:01
(Alliance News) - Shares rose in Prospex Energy PLC on Thursday after gaining regulatory approval for the acquisition of a 50% interest in Spanish gas production and power station operation El Romeral.
Shares in the European gas and power-focused investment firm were 15% higher at 2.12 pence on Thursday in London.
Tarba Energia SL, in which Prospex holds a 50% interest, said that both ministerial and regional authorities have signed off on the transfer of El Romeral, which marks the final regulatory approval for the acquisition.
El Romeral is a project in south west Spain that includes three producing wells that supply gas to a 100% project-owned 8.1 megawatts power station.
At the end of January, Prospex announced the raising of GBP720,000 through a share placing to fund the acquisition.
Once the acquisition is completed, Tarba will assume day-to-day management and control of El Romeral and will start implementing a number of short-term operational enhancements and efficiencies.
"It was not only the excellent value however that attracted us to El Romeral but also the significant growth potential. Gross contingent and prospective gas resources of 5 billion cubic feet and 90bcf respectively at two development locations and 11 prospects provide multiple low risk opportunities to increase the volumes of gas supplied to the power station which, when gas was not a limiting factor, regularly produced 60,000 megawatt-hours per annum," said Chair Bill Smith.
Also on Wednesday, Prospex raised GBP265,000 through the issue of unsecured convertible loan notes, the proceeds of which will go towards general working capital purposes.
The loan notes will pay 10% interest per annum with the first six-monthly payment due in June next year. The notes have a term of 18 months with capital repayment of unconverted amounts due on June 30, 2022.
By Dayo Laniyan; [email protected]
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