Business
Placing to Raise £720,000 & Director Dealing
Placing to Raise £720,000 & Director Dealing.
About this update from Prospex Energy Plc
[{"type":"text","content":"\n \nRNS Number : 3580B Prospex Oil and Gas PLC 30 January 2020 \n\n \nProspex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil and Gas\n \nProspex Oil and Gas Plc ('Prospex' or the 'Company') \nPlacing to Raise £720,000 & Director Dealing\n \nProspex Oil and Gas Plc, the AIM quoted investment company, is pleased to announce that it has raised £720,000 gross via an oversubscribed placing of 600,000,000 new ordinary shares of £0.001 each in the Company (\"Ordinary Shares\") (the \"Placing Shares\") at a price of 0.12 pence per Placing Share (the \"Placing Price\") (the \"Placing\"). The net proceeds of the Placing will primarily be used to fund the Company's acquisition of a 49.9% indirect stake in El Romeral, an integrated gas production and power station operation located in the Guadalquivir basin in southern Spain ('El Romeral' or 'Project') (please refer to the Company's announcement of 17 December 2019 for further information). The Placing was undertaken with new and existing investors as well as certain Directors of the Company who are acquiring Placing Shares with an aggregate value of £140,000 based on the Placing Price.\n \nUse of Proceeds\nAs previously announced, El Romeral is being acquired by Tarba Energia S.L (\"Tarba\") which is jointly owned by Prospex and Warrego Energy Limited (\"Warrego\"). Warrego funded the initial consideration of €750,000 for a 100% interest in El Romeral. Tarba has advised the Company that this has been paid to the vendor and the vendor has initiated the transfer process. \n \nFollowing the Placing, Prospex will elect to participate with a 49.9% interest in the Project and will therefore refund to Warrego the corresponding proportion of the initial consideration (€374,250). Following this, Warrego will indirectly own the balance of the Project, being 50.1%. \n \nEl Romeral includes three production licences on which three wells supply gas to a Project-owned 8.1 MW power station. The acquisition of a 49.9% interest in El Romeral will therefore lead to a step-up in Prospex's production profile to five producing gas wells, which have the potential to generate over 9,000,000 scm net in 2021. In addition to the three producing wells at El Romeral, Prospex has a 50% interest in the Bainet-1 well on the Suceava Concession in R...