Business
Acquisition, Placing & Romanian Investment Update
Acquisition, Placing & Romanian Investment Update.
About this update from Prospex Energy Plc
[{"type":"text","content":"\n \nRNS Number : 0275V Prospex Oil and Gas PLC 31 October 2017 \n\nProspex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil and Gas\n \nProspex Oil and Gas Plc \n(\"Prospex\" or the \"Company\")\n \nAcquisition of 17% interest in Proven Gas Permit in Po Valley, Italy\nPlacing to raise £1.6 million\nUpdate on Investment in Romania\n \nProspex Oil and Gas Plc, the AIM quoted investment company, is pleased to announce a farm-in agreement with Po Valley Operations Pty Ltd, a subsidiary of ASX listed, Po Valley Energy (\"PVE\"), to acquire a 17% working interest in the Podere Gallina Exploration Permit (\"Podere Gallina\" or the \"Permit\") in the Po Valley region of Italy (the \"Acquisition\") for a total consideration payable of approximately €1.15 million (the \"Consideration\"). \n \nThe Company also announces that it has raised £1.6million (approximately €1.8 million gross) via an oversubscribed placing of 372,093,000 ordinary shares of £0.001 each (the \"New Ordinary Shares\") at a price of 0.43 pence per New Ordinary Share (the \"Placing Price\") (the \"Placing\"). The net proceeds of the Placing will be used to satisfy the Consideration and for general working capital purposes.\n \nThe Acquisition \nThe Permit contains the currently shut-in Selva Gas-Field, which historically produced 83Bcf between 1960 and 1984, as well as multiple exploration opportunities. The Acquisition is in line with the Company's objective to build a portfolio of high impact onshore and shallow offshore European opportunities with short timelines to first, or restarted production. \n \nPodere Gallina Permit: a proven play in a prolific hydrocarbon region \n· Located onshore northern Italy in the Po Valley where over 5,000 wells have been drilled historically\n· Holds the Selva Gas-Field (previously operated by ENI) ('Selva'), which produced 83 Bcf from Lower Pliocene gas sands before being shut-in in 1984, at which point it was still producing at >0.9Bcf per year\n· Modelling work highlights the potential to recover undrained gas structurally updip from historic Selva wells\n \nSignificant near term development project at Selva \n· The Podere Maiar-1d appraisal/redevelopment well (\"Maiar-1d\" or \"t...