14th Oct 2020 12:05
(Alliance News) -Â Prospex Energy PLC on Wednesday said it has agreed the sale of its wholly-owned subsidiary PXOG Massey.
Massey's sole asset is its 50% interest in the economic rights of the EIV-1 Suceava concession in Romania.
Prospex is selling Massey to H2Oil Ltd.
Under the sale and purchase agreement, Prospex will receive up to GBP215,000 in cash in respect of historical debt owed to the company by Massey and nominal consideration for shares in Massey. Of the GBP215,000 due, GBP182,650 has already been received and half of the remainder will be released subject to a production milestone at Bainet.
Suceava holds the Bainet field, which was discovered in late 2017.
Monthly production at Bainet is currently lower than usual due to a recent failure of a third party compressor outside the concession, Prospex noted. The funds will be released once normal operations have resumed.
The other half is to be retained against general warranties will be released should no claims arise in the six months once normal operations have resumed.
"The sale of our 50% interest in Suceava follows a long-term strategic review of our extensive portfolio. With the acquisition of El Romeral at the start of the year and with it the proposed addition of another 11 high quality, very low risk prospects it became clear that Suceava would be less core as time progressed," said Prospex Managing Director Edward Dawson.
Shares in Prospex were up 2.4% at 2.15 pence in London on Wednesday.
By Lucy Heming;Â [email protected]
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