Prospex Energy Plc · LSE:PXEN
Prospex Energy — Investor Presentation (January 2023)
32 slides from Prospex Energy's investor presentation, January 2023
Slide 1: Prospex Energy plc Proactive Investor Presentation
Prospex Energy plc Proactive Investor Presentation AIM : PXEN January 2023
Slide 2: Disclaimer
DISCLAIMER This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitm
Slide 3: At a Glance
AT A GLANCE AIM listed natural gas production and power generation investment Shareprice company focussed on building a portfolio of late stage onshore energy 16.29 p* assets in Europe PXEN Share Price – 2022 Market Cap 45.4 (£m)* (I Ticker PXEN Shares in issue Proactive Investors rated PXEN as the
Slide 4: Market Sentiment
MARKET SENTIMENT ► Russia’s war against Ukraine highlighted Europe’s dependency on Russia for gas ► Global decarbonisation remains high on the agenda, but there is a realisation that, in the short term, Oil & Gas will continue to be part of the energy mix ► EU's long-term growth strategy is to make
Slide 5: Overview of Prospex Energy
OVERVIEW OF PROSPEX ENERGY Prospex Energy Portfolio 37% of the Podere Gallina licence in the Po Valley Italy which contains the Selva field – Operator PVO, wholly owned by Po Valley Energy Ltd1 63% 49.9% of the producing El Romeral gas to power plant in Southern Spain – Selva Operator Tarba Energía
Slide 6: Spain - El Romeral & Tesorillo
Spain - El Romeral & Tesorillo
Slide 7: El Romeral Power Plant - Carmona
El Romeral Power Plant - Carmona Prospex owns 49.9% of El Romeral (50.1% : Warrego) El Romeral is one of only three onshore gas deposits currently producing in Spain (El Romeral, Marismas and Viura) El Romeral power plant El Romeral power plant turbine hall El Romeral power plant ariel view El Romer
Slide 8: El Romeral Production History
El Romeral Production History Prospex owns 49.9% of El Romeral (50.1% : Warrego) • El Romeral plant has been in production since 2002 – first well was drilled in 1983 • All the produced gas is converted to electricity at the power plant and sold daily on the spot market • Production and prices achie
Slide 9: El Romeral Gross Income
El Romeral Gross Income Prospex owns 49.9% of El Romeral (50.1% : Warrego) • Income from the El Romeral power plant has been steadily increasing since acquisition • In December 2021 and April 2022 Tarba repaid €589,577 of loans from its two shareholders plus accrued interest of €19,093 equalling a t
Slide 10: Production & Development Project
PRODUCTION & DEVELOPMENT PROJECT HISTORY Prospex owns 49.9% of El Romeral (50.1% : Warrego Energy) ►Since 1983, 7 wells drilled resulted in gas discoveries ►5 went on production from 2002 ►2 proven undeveloped discoveries (PUDs) Uceda El Romeral Power Station El Romeral-3 CURRENT Aventurado North ►P
Slide 11: El Romeral – ESG and Business Development Opportunities
El Romeral – ESG and Business Development Opportunities Activity Timings • Environmental Initiation document submitted for 18 new infill well locations Q2 2021 • Project Apollo - Solar panels installed on power plant roof (payback in 4 years) Q3 2022 • Authorisation for drilling consent on receipt o
Slide 12: Potential El Romeral Grid Connection to 26” Enagas Gas Pipeline
Potential El Romeral Grid Connection to 26” Enagas Gas Pipeline El Romeral local pipeline network could be tied-in to the 26” Enagas pipeline which traverses the three Romeral concessions A 5.8km 6-inch pipeline would connect the plant to the nearest connection point Future gas purchase agreement to
Slide 13: Potential for shut-in El Romeral wells for Gas Storage
Potential for shut-in El Romeral wells for Gas Storage Gas Storage shut-in well candidates: • Rio Corbones-1 • Sevilla-3 Following the connection of the Tarba pipeline network to the 26” Enagas pipeline the Rio Corbones- 1 and Sevilla-3 structures could be used as gas storage reservoirs Prospex Ener
Slide 14: El Romeral: Gas Ready for Development
EL ROMERAL: GAS READY FOR DEVELOPMENT Prospex owns 49.9% of El Romeral (50.1% : Warrego Energy) 11 LOW-RISK PROSPECTS 2 UNDEVELOPED DISCOVERIES FULLY-OWNED CAPACITY AT PLANT CERTIFIED BY CPR* FROM THE 1980s LOCAL PIPELINE NETWORK FOR MORE GAS ❖ BEST TECHNICAL CASE SHOWN IN SOLID COLOUR ❖ LOW AND HIG
Slide 15: Tesorillo Permit Map
Tesorillo Permit Map Prospex owns 15% of Tesorillo (Warrego 85%) Prospex option to increase to 49.9% The Tesorillo Exploration Permit is currently suspended Application to convert to a Exploitation Concession submitted in May 2021 1. Low Risk Exploration 1956 Almarchal-1 well logged 212m of net gas
Slide 16: Italy - Selva Malvezzi
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Slide 17: Proven Gas Reserves
PROVEN GAS RESERVES ► Selva Malvezzi is an approved production concession with an area of 81 km2 ► PXEN farmed-in to 17% in October 2017 ► Podere Maiar (PM-1) discovery well drilled in December 2017 ► Well tested gas to surface in January 2018 from 2 intervals – now suspended and awaiting production
Slide 18: Steps to Production
STEPS TO PRODUCTION ON TARGET TO START PRODUCTION IN Q2 2023 ►Preliminary production concession, approved Feb 2019 ►Technical environmental approval, approved Jan 2020 & Nov 2020 ►Environment Minister Decree, approved April 2021 ►INTESA (Intergovernmental agreement), granted Q2 2022 ►Final Productio
Slide 19: Italy – Podere Gallina Licence Selva Field timeline
Italy – Podere Gallina Licence Selva Field timeline Prospex owns 37% of the Podere Gallina licence in the Po Valley Italy which contains the Selva field Activity Timing* • Environmental Impact Assessment approvals Q1 2021 • Executed grid tie-in contract with SNAM Q4 2021 • Environmental monitoring b
Slide 20: Italy - Selva Field Economics (37% WI) @ €0.2/scm flat
Italy - Selva Field Economics (37% WI) @ €0.2/scm flat For 37% WI Post tax NPV10 = €5.43M1 Cumulative net cash flow = €12.6M1 Based on:- Net 2P CPR reserves 140 MMscm (5 bcf)2 Gas price €0.2/scm flat from Jan-2019 CPR (≈€19/MWhr ≈50p/therm)2 Net Capex €2.352M1 (including compression in year 5 and de
Slide 21: Italy - Selva Field Economics (37% WI) @ TTF Forward Curve
Italy - Selva Field Economics (37% WI) @ TTF Forward Curve For 37% WI Post tax NPV10 = €30.55M1 Cumulative net cash flow = €41.8M1 Based on:- Net 2P CPR reserves 140 MMscm (5 bcf)2 Gas price TTF forward curve3 2023 = €0.8/scm (≈75.3/MWhr ≈195p/therm) 2024 = €0.76/scm (≈€72.1/MWhr ≈185p/therm) declin
Slide 22: Selva Malvezzi Upside
SELVA MALVEZZI UPSIDE Low-risk follow-up targets ► Selva North and Selva South are stratigraphic pinch- outs in the same style as the Podere Maiar discovery, supported from interpretation of old Selva Wells ► Following the success of Podere Maiar, they are upgraded to Contingent Resources by the CGG
Slide 23: Investment Case
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Slide 24: Reserves and Resources (Bcf)
RESERVES AND RESOURCES (BCF) Net 2P Reserves Net 2C Contingent Net Best Estimate Resources Prospective Resources El Romeral, 0.15 North Selva – East Selva & other Tarazona, 0.9 Level B, 3.3 Podere Gallina, 32.6 Tesorillo Romeral 15%, 124.6 Romeral-4S, 1.6 Prospects, 44.8 5.11 Bcf 7.72 Bcf 493 Bcf It
Slide 25: Summary
SUMMARY Investment case: Unlocking shareholder value: ►Secured reserves/commercial revenue generation in 2021 ►Diversified portfolio assembled ►Rising share price in response to commodity prices and ►Risk managed full funding to first gas, still trading at discount to recent analyst [1] target price
Slide 26: Appendix: The Team, Outlook & Objectives
Appendix The Team Outlook & Objectives
Slide 27: The Team
THE TEAM Mark Routh CEO & Managing Director Mark is a Petroleum Engineer with more than 40 years of experience in the oil & gas industry. He has an MSc in Petroleum Engineering. He spent eight years as CEO/Chairman of AIM listed IOG plc. Founded CH4 Energy in 2002, which was focused on gas in NW Eur
Slide 28: Outlook for 2022-2023
OUTLOOK FOR 2022-2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 OTHER BUSINESS DEVELOPMENT OPPORTUNITIES (INCLUDING SOLAR PROJECTS) EL ROMERAL PERMITTING & PLANNING MULTIWELL CAMPAIGN SPAIN INCREASE ELECTRICITY PRODUCTION REVENUES TESORILLO – WELL DESIGN AND PERMITTING; GEOLOGY + GEOPHYSICS INTEGRATION; FIELDWORK
Slide 29: Selva Gas Pipeline Route
SELVA GAS PIPELINE ROUTE Prospex Energy – January 2023 28
Slide 30: Seismic Reprocessing
SEISMIC REPROCESSING Full reprocessing of El Romeral 2D Seismic using modern, broad Original bandwidth processing flow and new methods for noise attenuation Reprocessed Resulted in a significant uplift of imaging quality Project was delivered on time and in budget Re-interpretation has started with
Slide 31: Debt, Shares Issued, Warrants and Options
DEBT, SHARES ISSUED, WARRANTS AND OPTIONS Outstanding debt PXEN Shares issued 278,847,512 There are three outstanding Loan Note instruments:- • 2021 Loan Notes £214,454. Two out of three equal Name Shares in Issue % repayments of £107,227 remaining on 30-Jun-2023 Colin Wilson 20,073,557 7.20% and 31
Slide 32: Thank you
Thank you www.prospex.energy
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