Prospex Energy Plc · LSE:PXEN
Prospex Energy — Investor Presentation (April 2024)
26 slides from Prospex Energy's investor presentation, April 2024
Slide 1: Q2 2024 Corporate Presentation
Corporate Presentation AIM : PXEN Q2 2024 Corporate Presentation
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: About Prospex Energy
ABOUT PROSPEX ENERGY ➢ AIM listed energy investor with a focus on onshore Europe (AIM:PXEN) ➢ Two non-operated revenue generating onshore gas investments with low operational risk: ➢ Selva Malvezzi, Italy ➢ El Romeral gas to power plant, Spain ➢ Cash generative ➢ Debt free ➢ Positioned for growth EN
Slide 4: Corporate Structure & Board
CORPORATE STRUCTURE & BOARD European Growth Strategy Mark Routh, CEO Bill Smith, Non-Executive Chairman Identifying low-risk opportunities that have the potential to generate shareholder value Andrew Hay, Independent Alasdair Buchanan, Independent Non-Executive Director Non-Executive Director Market
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
Slide 6: Investment Portfolio – Italy
INVESTMENT PORTFOLIO – ITALY Italy: Selva Malvezzi Production Concession, Po Valley Selva (contains Selva Field) Ownership: 37% owned by Prospex (AIM:PXEN) / 63% owned by the operator Po Valley Energy Ltd (ASX:PVE) ➢ Selva Malvezzi is an approved production concession with an area of 81 km2 ➢ Produc
Slide 7: Selva Gas Production
SELVA GAS PRODUCTION STEPS TO PRODUCTION Selva Gas Pipeline Route ✓ 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
Slide 8: Selva Proven Gas Reserves
SELVA PROVEN GAS RESERVES ➢ 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 – The well is now in production ➢ In April 2022, completed acquisition of UOG’s 20% working Interest in Selva,
Slide 9: Selva Malvezzi Upside
SELVA MALVEZZI UPSIDE Low-risk follow-up targets Surface well locations and subsurface targets identified for three new wells to be drilled on the concession Selva North and Selva South ➢ Stratigraphic pinch-outs in the same style as Podere Maiar Selva North ➢ Upgraded to Contingent Resources follow
Slide 10: Timeline for Selva Malvezzi
TIMELINE FOR SELVA MALVEZZI • Environmental Impact Assessment approvals 2021 • Executed grid tie-in contract with SNAM • Environmental monitoring boreholes drilled and seismographs installed • ‘Intesa’ sent by MiTE[1] to the Emilia Romagna Regional government • ‘Intesa’ released by Emilia Romagna Re
Slide 11: Spain - El Romeral & Tesorillo
Spain - El Romeral & Tesorillo
Slide 12: Investment Portfolio – Spain
INVESTMENT PORTFOLIO – SPAIN Spain: El Romeral Ownership: El Romeral - 49.9% owned by Prospex / 50.1% owned by Warrego[1] (Operated by Tarba Energía) El Romeral El Romeral: Ongoing Production & Power Generation Tesorillo ➢ 8.1MW power station generating revenue at spot market electricity prices. Pro
Slide 13: Production & Development Project
PRODUCTION & DEVELOPMENT PROJECT HISTORY ➢ Since 1983, 7 wells drilled resulted in gas discoveries ➢ 5 went on production from 2002 ➢ 2 proven undeveloped discoveries (PUDs) PRESENT ➢ Production from 2 wells ➢ High electricity prices ➢ 26-inch ENAGAS pipeline traverses the three Romeral concessions
Slide 14: El Romeral – ESG & Business Development Opportunities
EL ROMERAL – ESG & BUSINESS DEVELOPMENT OPPORTUNITIES Activity Timings* ✓ Environmental Initiation proposed for 18 new infill wells, 5 permits to drill submitted Q2 2021 ✓ Project Apollo - Solar panels installed on power plant roof (payback in 4 years) Q3 2022 • Project Helios - photo-voltaic panels
Slide 15: Potential for El Romeral Shut-in Wells for Gas Storage
POTENTIAL FOR EL ROMERAL SHUT-IN WELLS FOR GAS STORAGE TARBA has started participating in the EU-financed UNDERGY storage programme, by means of technical information exchange. The programme considers using depleted reservoirs as gas storage. At least 2 candidates exist within the Romeral concession
Slide 16: 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 is now complete,
Slide 17: Prospect De-risking
PROSPECT DE-RISKING High-Grading the prospects from the 2022 interpretation: ➢ 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 anomalies at the pre-stack level with the help of a specialist geophysic
Slide 18: El Romeral: Gas Ready for Development
EL ROMERAL: GAS READY FOR DEVELOPMENT 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 HIGH CASES SHOWN ON EITHER SIDE ❖ PROVEN UNDEVELOPED DISCOVER
Slide 19: Tesorillo Permit Map
TESORILLO PERMIT MAP Prospex owns 15% of Tesorillo (Warrego 85%) Prospex option to increase to 49.9% 1. Low Risk Exploration ➢ 1956 Almarchal-1 well logged 212m of net gas pay ➢ Multiple DST’s flowed gas to surface* 2. Large defined structure ➢ Operated by Tarba Energía (85% Warrego : 15% PXEN) ➢ PX
Slide 20: Spain – Tesorillo Project
SPAIN – TESORILLO PROJECT POTENTIAL UNDEVELOPED DISCOVERY ➢ Contains the Almarchal-1 gas discovery well (drilled in 1957) which logged 212m of net gas pay. Multiple DST’s flowed gas to surface ➢ Operated by Tarba Energía (85% Warrego : 15% PXEN) PXEN option to increase to 49.9% for €1.725m ahead of
Slide 21: Timelines for 2024/2025
TIMELINES FOR 2024/2025 2024 2025 Q2 Q3 Q4 Q1 Q2 Q3 BUSINESS DEVELOPMENT OPPORTUNITIES (INCLUDING SOLAR PROJECTS) EL ROMERAL ENVIRONMENTAL PERMITTING & PLANNING DRILLING[1] PRODUCTION – UP TO 5 NEW WELLS[1] SPAIN - 5 WELL DRILLING CAMPAIGN INCREASE ELECTRICITY PRODUCTION REVENUES TESORILLO – WELL DE
Slide 22: Summary
SUMMARY I nve st me nt cas e U n l o ck in g s h are h o lde r val u e ➢ Secured reserves/commercial revenue generation ➢ Diversified portfolio assembled ➢ Still trading at discount to recent analyst[1] target price ➢ Risk managed ➢ Huge potential NPV uplift from new projects ➢ Multiple routes to si
Slide 23: The Team / Reserves & Resources
The Team Reserves & Resources
Slide 24: 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 quoted IOG plc and seven years as Chairman/NED of Warrego Energy Ltd. Founde
Slide 25: 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 26: Thank you
www.prospex.energy Thank you