Prospex Energy Plc · LSE:PXEN
Prospex Energy — Investor Presentation (October 2024)
32 slides from Prospex Energy's investor presentation, October 2024
Slide 1: Corporate Presentation October 2024
C O R P O R AT E P R E S E N TAT I O N O C TO B E R 2 0 2 4 AIM : PXEN
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: Overview
OVERVIEW Assets in yellow are in production UNLOCKING POTENTIAL IN EUROPEAN NATURAL GAS, POWER AND RENEWABLE ENERGY • AIM listed energy investor with a focus on onshore Applications Europe (AIM:PXEN) AIM-listed in Poland • Three non-operated revenue generating onshore company producing gas investmen
Slide 4: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Focused on maximising returns from Prospex’s established portfolio whilst identifying low-risk growth opportunities that have the potential to generate shareholder value Bill Smith Andrew Hay Alasdair Buchanan Mark Routh Non-Exec Independent Independent CEO Chairman No
Slide 5: Italy, Selva Malvezzi
ITALY, SELVA MALVEZZI Prospex owns a 37% Working Interest in the Selva Malvezzi Production Concession in the Po Valley Italy, which contains the Selva field (63% : Po Valley Energy – ASX:PVE) 5
Slide 6: Selva Malvezzi Production Concession, Po Valley
SELVA MALVEZZI PRODUCTION CONCESSION PO VALLEY (CONTAINS SELVA FIELD) Ownership: Selva Malvezzi is an approved production concession 37% owned by Prospex (AIM:PXEN) with an area of 81 km2 63% owned by the operator Po Valley Energy Ltd (ASX:PVE) • Production Concession granted by the Regulator Selva
Slide 7: Northern Italy – Selva Malvezzi Gas Production Concession
NORTHERN ITALY – SELVA MALVEZZI GAS PRODUCTION CONCESSION • Prospex owns a 37% Working Interest in the Selva Malvezzi Gas Production Concession in the Po Well site & Processing Plant Near Bologna Valley Italy, comprising the Selva field • 63% is owned by Po Valley Energy (ASX:PVE) • Podere Maiar – 1
Slide 8: Selva Gas Production
SELVA GAS PRODUCTION Route to Production Strong Flow Rate Preliminary production concession • C1 and C2 sands tested >150,000 scm/day in test (≈5.3 MMscfd) approved Feb 2019 • Plant designed to handle 150,000 scm/day (≈5.3 MMscfd) • Pipeline can handle up to 250,000 scm/day Technical environmental a
Slide 9: Selva Proven Gas Reserves
SELVA PROVEN GAS RESERVES Oct • PXEN farmed-in to 17% 2017 Dec • Podere Maiar (PM-1) discovery well drilled 2017 Jan • Well tested gas to surface from 2 intervals 2018 Apr • Completed acquisition of UOG’s 20% working interest in Selva, brings PXEN interest to 37% 2022 May • 4-inch pipeline connects
Slide 10: Selva Malvezzi Upside: 4 Wells for Permitting Targeting 88 Bcf
SELVA MALVEZZI PRODUCTION CONCESSION UPSIDE 4 WELLS FOR PERMITTING TARGETING 88 BCF (GROSS) Surface well locations and subsurface targets identified for four new wells to be drilled on the concession 1. Selva North and Selva South • Stratigraphic pinch-outs in the same style as Podere Maiar-1 (Selva
Slide 11: Selva Malvezzi Timeline
SELVA MALVEZZI TIMELINE 2022 2023 2024 2025 Permitting for further drilling on the Process and interpret 3D survey data to ‘Intesa’ sent by MiTE[1] to the Emilia Selva 37% development activity & costs concession - Selva North, Selva South, finalise drilling locations for Selva North, Romagna Regiona
Slide 12: Poland – Licence Applications
POLAND – LICENCE APPLICATIONS Prospex has pre-qualified to apply for licences onshore in Poland Applications have been submitted at 100% Working Interest initially If successful licences could be awarded by Q1 2025 12
Slide 13: Technical Rationale to be in Poland
TECHNICAL RATIONALE TO BE IN POLAND PROSPEX’s FOCUS AREAS are inside FORELAND BASINS, which typically host Tertiary turbidite sandstone reservoirs charged with gas C Foreland/Foredeep Fold and Thrust Belt B A Spanish Assets B Italian Asset C Polish Acreage Applications A A B C A HINTERLAND FORELAND
Slide 14: Spain: Viura, El Romeral & Tesorillo
SPAIN: VIURA, EL ROMERAL & TESORILLO Prospex owns a 7.24% interest in the Viura gas field (81.25% owned by Heyco Energy Group and operated by HEYCO Energy Iberia) Prospex owns a 49.9% interest in the El Romeral concessions & gas to power plant (50.1% owned by Warrego[1] and operated by Tarba Energía
Slide 15: Investment Portfolio: Spain
INVESTMENT PORTFOLIO: SPAIN FRANCE SPAIN ➢ 7.24% Owned by PXEN, including infrastructure VIURA ➢ Large gas field, estimated >90 Bcf recoverable gas EL ROMERAL ➢ High production rates achieved from modern wells ➢ In Production, producing from well V1 ST3 TESORILLO ➢ Adding reserves with 3 new wells ➢
Slide 16: Viura - Northern Spain
VIURA - NORTHERN SPAIN 90 BCF GAS FIELD IN PRODUCTION ➢ The Viura Gas Field is located in the Province of La Rioja, Northern Spain and is operated by HEYCO Energy Iberia (‘HEI’) ➢ PXEN acquired 7.5% of HEI including the interest in the Viura concession, existing production and surface facilities. PX
Slide 17: Viura - Northern Spain
VIURA - NORTHERN SPAIN 90 BCF GAS FIELD IN PRODUCTION ➢ The Viura gas field was discovered in 2010 with well Viura-1 (TD 3,788m), which tested with a HPHT reservoir P>500bars, delivered a maximum flow rate above 500,000 scm/d and was placed into production at 110,000 scm/d ➢ Viura-3 was drilled near
Slide 18: El Romeral
EL ROMERAL PRODUCTION AND DEVELOPMENT HISTORY • Since 1983, 7 wells drilled resulted in gas discoveries • 5 went on production from 2002 • 2 proven undeveloped discoveries (thus contingent resources) PRESENT • Production from 2 wells • High electricity prices • 26-inch ENAGAS pipeline traverses the
Slide 19: El Romeral 1, 2 & 3 Concessions: 5 Wells for Permitting
SOUTHERN SPAIN - EL ROMERAL 1, 2 & 3 CONCESSIONS 5 WELLS FOR PERMITTING, TARGETING 18.2 BCF Most Likely Resources Sevilla-3E 0.9 Bcf Santa Clara-2 2.3 Bcf Nuevo Gamo 1.5 Bcf Santa Rita 3.8 Bcf Romeral 2S 9.7 Bcf El Romeral Power Plant Tie-in Pipeline lengths Sevilla-3E 0.8 km Santa Clara-2 0.9 km Nu
Slide 20: El Romeral: ESG & Business Development Opportunities
EL ROMERAL ESG & BUSINESS DEVELOPMENT OPPORTUNITIES ACTIVITY TIMINGS (post Q2 2024 indicative) Environmental Initiation consultation for 18 new infill gas wells, 5 permits to drill submitted Q2 2021 Project Apollo - Solar panels installed on power plant roof (payback in 4 years) Q3 2022 Environmenta
Slide 21: El Romeral: Seismic Processing
EL ROMERAL SEISMIC PROCESSING • Full reprocessing of El Romeral 2D Seismic ORIGINAL using modern, broad bandwidth REPROCESSED processing flow and new methods for noise attenuation • Resulted in a significant uplift of imaging quality • Project was delivered on time and in budget • Re-interpretation
Slide 22: El Romeral: Prospect De-risking
EL ROMERAL PROSPECT DE-RISKING Examining the seismic amplitude High-grading the prospects from the 2022 interpretation with increasing angle, at gathers The 2022 interpretation of re-processed seismic data resulted in a list of 20 targets In 2023, we further de-risked these targets by examining AVO
Slide 23: El Romeral: Gas Ready for Development
EL ROMERAL GAS READY FOR DEVELOPMENT 11 LOW-RISK PROSPECTS 2 UNDEVELOPED DISCOVERIES FULLY-OWNED CAPACITY AT PLANT FOR MORE GAS CERTIFIED BY CPR* FROM THE 1980s LOCAL PIPELINE NETWORK ❖ BEST TECHNICAL CASE SHOWN IN SOLID COLOUR ❖ LOW AND HIGH CASES SHOWN ON EITHER SIDE ❖ PROVEN UNDEVELOPED DISCOVERI
Slide 24: Tesorillo
TESORILLO • Contains the Almarchal-1 gas discovery well (drilled in 1957) which logged • Prospex owns 15% of Tesorillo (Warrego Low Risk Exploration 212m of net gas pay 85%) • Multiple DST’s flowed gas to surface* • Prospex option to increase to 49.9% Large defined • Operated by Tarba Energía (85% W
Slide 25: The Team; Outlook & Objectives
THE TEAM OUTLOOK & OBJECTIVES 25
Slide 26: 2024/2025 Timelines
2024/2025 TIMELINES 2024 2025 Q2 Q3 Q4 Q1 Q2 Q3 BUSINESS DEVELOPMENT OPPORTUNITIES (INCLUDING SOLAR PROJECTS) EL ROMERAL ENVIRONMENTAL PERMITTING & PLANNING PRODUCTION – UP TO 5 DRILLING[1] → 5 WELL DRILLING CAMPAIGN NEW WELLS[1] INCREASE ELECTRICITY PRODUCTION REVENUES SPAIN DRILLING DRILL PROCUREM
Slide 27: Poised for Growth
POISED FOR GROWTH • The 37% interest in Selva Malvezzi is projected to generate net post-tax post-royalty cashflows of €2.6 million per year, according to the CGG CPR, calculated at 2019 gas prices GROWTH • Using current forward curve gas price predictions (ICE TTF) the 2024 net annual post-tax, pos
Slide 28: Reserves and Resources
RESERVES AND RESOURCES Net 2C Contingent Net Best Estimate Net 2P Reserves Resources Prospective Resources Tarazona, East Selva & other 0.9 Podere Gallina, 32.6 Romeral Prospects Romeral-4S, North Selva – 44.8 Tesorillo 1.6 Level B, 3.3 15%, 124.6 Viura, 6.42 Selva Malvezz i, 4.96 11.53 Bcf 7.72 Bcf
Slide 29: The Board
THE BOARD Mark Routh Mark is a Petroleum Engineer with more than 40 years of experience in the oil & gas industry. He has an MSc in Petroleum CEO & Managing Engineering. He spent eight years as CEO/Chairman of AIM quoted IOG plc and seven years as Chairman/NED of Warrego Director Energy Ltd. Founded
Slide 30: Management Team
MANAGEMENT TEAM Mark Routh 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 quoted IOG plc and seven years as Chairman/NED of Warrego Energy Ltd. CEO & Managing Founded CH
Slide 31: Summary: Strong Management Unlocking Shareholder Value
SUMMARY • Secured reserves/ • Diversified portfolio • Focus on mature Investment Case Strong Management Unlocking Shareholder Value European Focussed • Highly experienced commercial revenue assembled markets with existing team of technically generation infrastructure led professionals • Risk managed
Slide 32: www.prospex.energy
Giese ENERGY PLC C1) fal www.prospex.energy
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