Business
Acquisition of further Working Interest in Selva
Acquisition of further Working Interest in Selva.
About this update from Prospex Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0773I\n Prospex Energy PLC\n 10 August 2021\n \n \n \n \n \n \n \n Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas\n \n \n 10 August 2021\n \n \n Prospex Energy PLC ('Prospex' or the 'Company')\n \n \n \n \n \n Acquisition of further Working Interest in Selva\n \n \n \n \n \n Highlights:\n \n \n · \n Conditional acquisition of additional 20% interest in Selva gas field in Italy for €2,164,701 - Prospex's holding will increase to 37%\n \n \n · \n The transaction is set to add a further 2.7 billion cubic feet (\"Bcf\") of 2P gas reserves to Prospex's portfolio and increase its share in Selva's 2P gas reserves to 5bcf\n \n \n · \n The Company's appointed debt advisers are already engaging in providing a funding package focused primarily on a loan facility\n \n \n · \n Selva was successfully drilled in 2018 by the Podere Maiar well and is expected to come into production by Q2 2022\n \n \n \n \n \n Prospex Energy PLC, the AIM quoted investment company (AIM:PXEN) focused on European gas and power projects, is pleased to announce that on 9 August 2021 it signed a conditional Sale and Purchase Agreement (\"SPA\") with AIM quoted United Oil and Gas plc (AIM:UOG) (\"UOG\") and UOG Holdings plc (a wholly owned subsidiary of UOG), to conditionally acquire a further 20% working interest in the Podere Gallina Licence in the Po Valley region of Italy. Prospex will acquire 100% of UOG Italia S.r.l. (\"UOG Italia\") which has a 20% working interest in the Podere Gallina licence which contains the Selva Gas Field (\"Selva\") which is predicted to come onto production by Q2 2022, subject to receipt of a full production licence from the Italian authorities. Upon completion, Prospex will own a 37% working interest in the Podere Gallina Licence, increasing its share of Selva's independently verified 2P gas reserves from 2.3 Bcf to 5.0 Bcf[1]. \n \n \n \n \n \n The transaction is conditional upon (1) Prospex sourcing the financing for the consideration of €2,164,701 (the \"Consideration\") less an amount of €108,235\n which has already been paid to UOG as a deposit (and which represents 5% of the total Consideration) and (2) receipt of required approvals by the Italian Ministry of Economic Development of a change of control of UOG Italia S.r.l. (\"UOG It...