Business
Conditional First Investment
Conditional First Investment.
About this update from Prospex Energy Plc
[{"type":"text","content":"\n \nRNS Number : 2186L Prospex Oil and Gas PLC 08 January 2016 \n\nProspex Oil and Gas plc\n \n(\"Prospex\" or the \"Company\")\n \nConditional First Investment\n \nProspex is pleased to announce its first conditional investment since becoming an AIM Investing Company in April 2015.\n \nOverview\n \nProspex has conditionally agreed to acquire a 49% stake in Hutton Poland Ltd (\"Hutton Poland\") from Hutton Energy Ltd (\"Hutton\") for £620,000 in cash. The initial consideration is £130,000 with the remaining £490,000 deferred up to 31 August 2016.\n \nHutton has been active in Poland since 2009, holding various stakes in exploration licenses, and in the process has gathered a geologic and geophysical data set. Hutton Poland presently has seven license applications in process. The most advanced is the Kolo License application which has been recently offered to Hutton Poland by the regulatory authorities.\n \nProspex will provide an update once it has been informed of the status of the Kolo License award by Hutton Poland. Prospex has been advised by Hutton Energy that the award could be finalised in the next two weeks. \n \nThe Kolo License Area\n \nThe Kolo License area is located in the Lodz Trough within the Polish Central Lowlands, c120 km west of Warsaw. The directors of Prospex believe the region is well serviced by oil and gas surface facilities and sits on major European transport arteries.\n \nThe Kolo License area is 1,150 square kilometres and is elongated in a NW-SE direction along the strike of the Lodz Trough, a well-known Mesozoic sedimentary basin. This basin is known in Poland by its salt mines (Klodava) but also by important manifestations of gas and oil in shallow water wells. \n \nHutton has 1400km of vintage 2D seismic over the license area and gathered a further 250km of 2D seismic data in 2014. \n \nRecent geological studies and interpretation of geophysical data by Prospex have indicated that the Lodz Trough has the potential to contain commercial oil and gas accumulations at deeper and shallow levels in early and late Cretaceous sedimentary reservoir rocks, similarly to hydrocarbon provinces like the North Sea and the Baltic region.\n \nProspex believes the prospectivity of the license is in conventional targets as opposed to unco...