Prospex Energy Plc · LSE:PXEN
Prospex Energy — Investor Presentation (July 2024)
28 slides from Prospex Energy's investor presentation, July 2024
Slide 1: Corporate Presentation Q3 2024
C O R P O R AT E P R E S E N TAT I O N Q3 2024 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 UNLOCKING POTENTIAL IN EUROPEAN NATURAL GAS, POWER AND RENEWABLE ENERGY • PROSPEX is a UK company listed in the AIM market of London as an energy investor (AIM:PXEN) with a focus on onshore Europe to produce gas and electricity • Two non-operated revenue generating onshore gas investments w
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: Northern Italy - Selva Malvezzi Gas Production Concession
NORTHERN ITALY - SELVA MALVEZZI GAS PRODUCTION CONCESSION • Prospex owns a 37% Working Interest in the Well site & Processing Plant Near Bologna Selva Malvezzi Gas Production Concession in the Po Valley Italy, comprising the Selva field • 63% is owned by Po Valley Energy (ASX:PVE) • Podere Maiar – 1
Slide 7: 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 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 • Well tested gas to surface from 2 intervals Jan 2018 • The well is now in production • Completed acquisition of UOG’s 20% working interest in Selva Apr 2022 • Brings PXEN interest to 37
Slide 10: Northern Italy - Selva Malvezzi Production Concession Upside
NORTHERN ITALY - SELVA MALVEZZI PRODUCTION CONCESSION UPSIDE 4 WELLS FOR PERMITTING TARGETING 88 BCF (GROSS) Surface well locations and subsurface targets identified for three new wells to be drilled on the concession 1. Selva North and Selva South • Stratigraphic pinch-outs in the same style as Pod
Slide 11: Selva Malvezzi Timeline
SELVA MALVEZZI TIMELINE 2021 2022 2023 2024 Preparations for further drilling on the Environmental Impact Assessment ‘Intesa’ sent by MiTE[1] to the Emilia Selva 37% development activity & costs concession - Selva North, Selva South & approvals Romagna Regional government (started in Q2 2022) East S
Slide 12: Spain, El Romeral & Tesorillo
SPAIN, EL ROMERAL & TESORILLO Prospex owns a 49.9% interest in the El Romeral gas to power plant (50.1% owned by Warrego[1] and operated by Tarba Energía) Prospex owns a 15% interest in the Tesorillo Exploration Permit (85% owned by Warrego[1] and operated by Tarba Energía) 12 [1] Warrego Energy Ltd
Slide 13: Southern Spain – Gas Production & Exploration
SOUTHERN SPAIN – GAS PRODUCTION & EXPLORATION El Romeral 1, 2 & 3 (Operated by Tarba Energía) Ongoing Production & Power Generation 49.9% owned by Prospex / 50.1% owned by Warrego[1] (Operated by Tarba Energía) 8.1MW power station generating revenue at spot market electricity prices. Production from
Slide 14: El Romeral: Production and Development
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 (PUDs) PRESENT • Production from 2 wells • High electricity prices • 26-inch ENAGAS pipeline traverses the three Romeral concess
Slide 15: Southern Spain - El Romeral Concessions 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 16: El Romeral: ESG & Business Development Opportunities
EL ROMERAL ESG & BUSINESS DEVELOPMENT OPPORTUNITIES ACTIVITY TIMINGS (post Q3 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 17: El Romeral: Potential for Shut-in Wells for Gas Storage
EL ROMERAL POTENTIAL FOR SHUT-IN WELLS FOR GAS STORAGE Potential to increase Spain’s fuel independence Spain only has 3 gas fields active today; El Romeral has the potential to add to those resources • TARBA has started participating to the EU- financed UNDERGY storage programme, by means of technic
Slide 18: 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 19: 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 20: 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 21: Tesorillo
TESORILLO Prospex owns 15% of Tesorillo (Warrego 85%) Prospex option to increase to 49.9% Cadiz Province, Southern Spain, over 380 km2 of surface area • Contains the Almarchal-1 gas discovery well (drilled in 1957) which logged Low Risk 212m of net gas pay Exploration • Multiple DST’s flowed gas to
Slide 22: Outlook & Objectives
THE TEAM OUTLOOK & OBJECTIVES 22
Slide 23: 2024/2025 Timelines
2024/2025 TIMELINES (EARLIEST DRILLING TIMES SUBJECT TO PERMITTING SCHEDULES) 2024 2025 Q3 Q4 Q1 Q2 Q3 Q4 BUSINESS DEVELOPMENT OPPORTUNITIES (INCLUDING SOLAR PROJECTS) EL ROMERAL ENVIRONMENTAL PERMITTING - 5 WELLS DRILLING[1] PRODUCTION – UP TO 5 NEW WELLS[1] SPAIN INCREASE ELECTRICITY PRODUCTION RE
Slide 24: Poised for Growth
POISED FOR GROWTH • The 37% interest in the Italian asset 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,
Slide 25: Reserves and Resources
RESERVES AND RESOURCES Net 2C Contingent Net Best Estimate Net 2P Reserves Resources Prospective Resources East Selva & other Tarazona, North Selva El Romeral, 0.15 Podere Gallina, 32.6 Romeral- 0.9 – Level B, Romeral 4S, 1.6 3.3 Prospects 44.8 Tesorillo 15%, 124.6 5.11 Bcf 7.72 Bcf 493 Bcf South Se
Slide 26: The Team
THE 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. Founded CH4 Energy in 2002, CEO
Slide 27: 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 28: www.prospex.energy
QS esi ENERGY PLC C1) fal www.prospex.energy