Business
Completion of Viura Gas Field Acquisition
Completion of Viura Gas Field Acquisition.
About this update from Prospex Energy Plc
[{"type":"text","content":"\n\n27 August 2024\n \nProspex Energy plc\n \n(\"Prospex Energy\" or the \"Company\")\n \nCompletion of Viura Gas Field Acquisition\n \nProspex Energy plc (AIM:PXEN), the investment company focused on European gas and power projects, is pleased to confirm that on 19 August 2024, the Company completed the acquisition of 7.5% of HEYCO Energy Iberia S.L. (\"HEI\"), which has majority ownership in the Viura gas field in northern Spain, having raised, in aggregate, gross proceeds of approximately £4.2 million, as announced on 8 August 2024.\n \nThe acquisition marks a further important step in the development of the Company's strategy to become a mid-tier independent European energy producing group.\n \nHighlights:\n· By committing to fund 15% of the 2024-2026 HEI development programme, Prospex now owns 7.5% of HEI. Following the completion of the acquisition of SHESA's interest in the concession, HEI will own 96.4865% of the Viura concession, its reserves, existing production and the surface facilities. This will translate to a Prospex ownership of 7.2365% in the Viura concession.\n· This is not a standard \"2:1 Promote\" transaction. Whilst Prospex is funding 15% of costs to earn 7.5% of HEI, the Company will not only earn a 10% coupon on its capital investment but will also be repaid its capital investment from 15% of the HEI production income (after OPEX and taxes), until payback at which point Prospex's share of net income reverts to 7.5%.\n· Viura estimated gross remaining reserves is 90 Bcf (2.5 Bcm) which is 6.5 Bcf (0.18 Bcm) net to Prospex.\n· The Viura 1B development well is expected to reach the reservoir horizon in the next two to three weeks and is expected to be generating revenues from production as early as October.\n· Prospex is contributing to the funding of the 2024 development programme, including the Viura-1B well, at a cost of £3.51 million which is 15% of the estimated £23.4 million total costs in 2024.\n· Prospex's 15% share of the 2025/2026 development programme is estimated at £4.84 million, which is to be funded by future cash calls or from Phase 1 production or both.\n· Based on a conservative gas price assumption of €31/MWh, Prospex ...