Prospex Energy Plc · LSE:PXEN
Prospex Energy — Investor Presentation (May 2024)
27 slides from Prospex Energy's investor presentation, May 2024
Slide 1: Corporate Presentation May 2024
C O R P O R AT E P R E S E N TAT I O N M AY 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: Unlocking Potential in European Natural Gas, Power and Renewable Energy
OVERVIEW UNLOCKING POTENTIAL IN EUROPEAN NATURAL GAS, POWER AND RENEWABLE 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, Sp
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
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: 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 8: 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 9: Selva Malvezzi Upside: Low-Risk Follow-Up Targets
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 1. Selva North and Selva South • Stratigraphic pinch-outs in the same style as Podere Maiar-1 (Selva) • CGG CPR[1] upgraded to Contingent Reso
Slide 10: 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 11: 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) 11 [1] Warrego Energy Ltd
Slide 12: Investment Portfolio - Spain
INVESTMENT PORTFOLIO - SPAIN El Romeral (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 2 gas wells Plant operate
Slide 13: 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 14: 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 15: 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 16: 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 17: 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 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 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 19: 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 20: Tesorillo: Potential Undeveloped Discovery
TESORILLO 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 drilling a well
Slide 21: Outlook & Objectives
THE TEAM OUTLOOK & OBJECTIVES 21
Slide 22: 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 NEW DRILLING[1] - 5 WELL DRILLING CAMPAIGN WELLS[1] SPAIN INCREASE ELECTRICITY PRODUCTION REVENUES TESORILLO WELL DESIGN A
Slide 23: 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 24: Reserves and Resources
RESERVES AND RESOURCES Net 2C Contingent Net Best Estimate Net 2P Reserves Resources Prospective Resources East Selva & other El Romeral, 0.15 Tarazona, North Selva – Podere Gallina, 32.6 Romeral- Romeral 4S, 1.6 Prospects 44.8 Tesorillo 15%, 124.6 5.11 Bcf 7.72 Bcf 493 Bcf South Selva – Italy, 4.96
Slide 25: 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 26: Summary: Investment Case
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 27: www.prospex.energy
QS esi ENERGY PLC C1) fal www.prospex.energy