Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas

9 February 2022

Prospex Energy PLC

('Prospex' or the 'Company')

Closing of the Broker Option

Prospex Energy PLC, the AIM quoted investment company focused on European gas and power projects, provides an update on the Broker Option offered to all the Company's existing shareholders following the Company's announcement on Monday 7 February 2022.

After closing the Broker Option at 16:30 on Tuesday 8 February 2022, the Company is pleased to report that the Broker Option raised £59,800 through the conditional issue of 1,708,571 new Ordinary Shares thereby taking the total proceeds conditionally raised by the Company from the Placing, Subscription and the Broker Option, in aggregate, to £2.455 million.  

Assuming all the Resolutions are approved at the General Meeting, a total of 70,137,143 new Ordinary Shares will be issued pursuant to the Placing, Subscription and the Broker Option.  The Broker Option Shares will be admitted to trading at the same time as the Placing Shares and the Subscription Shares, subject to the approval of the Resolutions at the General Meeting at 10:00 on 23 February 2022.

As per the Circular, the Company reminds Shareholders that the deadline date by which proxy forms for voting at the General Meeting on 23 February 2022 must be received by Neville Registrars is 10:00am on 21 February 2022.

Capitalised terms in this announcement are as defined in the Company's circular to shareholders dated 7 February 2022.

Mark Routh, Prospex's CEO, commented:

"We are very pleased to have closed this Placing, Subscription and Broker Option with an extra 2.5 per cent. of the original placing being raised via the Broker Option bringing us to a total of £2.455 million. Thank you to all our existing and new shareholders for your support."

We look forward to growing the Company in the coming months starting with the acquisition of the 20% of the Selva Field in Italy."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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For further information visit www.prospex.energy or contact the following:

Notes

Prospex Energy PLC is an AIM quoted investment company focussed on high impact onshore and shallow offshore European opportunities with short timelines to production. The Company's strategy is to acquire undervalued projects with multiple, tangible value trigger points that can be realised within 12 months of acquisition and then applying low-cost re-evaluation techniques to identify and de-risk prospects.  The Company's strategy is to rapidly scale up gas production in the short term to generate internal revenues that can then be deployed to develop the asset base and increase production further.

About Selva:

The Podere Gallina Licence is in the Po Valley region of Italy.  The licence contains the currently shut‑in Selva gas-field as well as exciting exploration opportunities.  The Podere Maiar-1 well was completed in December 2017 and successfully found a commercial gas accumulation up-dip of the previous wells on the Selva field.  The well is suspended and is awaiting permissions to connect it to the local gas grid for gas export.  The Company currently has as 17% working interest in the Podere Gallina licence.  The Company announced on 10 August 2021 the conditional acquisition of a further 20% of the Podere Gallina licence from UOG.  Subject to securing funding Prospex is set to increase its working interest to 37% in Q2 2022.

Subject to the award of the Production Concession by the Italian authorities, expected in March 2022, first gas is targeted for Q1 2023.

The Podere Gallina Licence holds independently verified 2P gross reserves of 13.4 Bcf (5.0 Bcf net to Prospex at 37% WI), gross Contingent 2C Resources of 14.1 Bcf (5.2 Bcf net) and a further 91.5 Bcf of gross Best Estimate Prospective Resources (33.9 Bcf net).

(Source: CGG Services (UK) Limited Competent Persons Report - January 2019 https://bit.ly/3nZNfYf).

About El Romeral and Tarba

The El Romeral gas and power project in Spain, with gas production wells supplying gas to an 8.1MW power plant near Carmona in Southern Spain is owned and operated by Tarba.  Prospex owns a 49.9% working interest in the El Romeral project via Tarba.  Tarba sells electricity generated from the plant on the spot market in Spain.  Current spot market prices have reached all-time highs in recent months.

Prospex also owns a 15% working interest in the large scale Tesorillo gas project in southern Spain, which has the potential to hold gross un-risked Prospective Resources of 831 Bcf of gas (Best Estimate), with upside in excess of 2 Tcf.

The Tesorillo permit is temporarily suspended, awaiting Ministry resolution and reinstatement as production licence.  The Tesorillo permit contains the Almarchal-1 gas discovery well (drilled in 1957) which logged 212m of net gas pay.  Multiple drill stem tests flowed gas to surface.

Operated by Tarba (85% Warrego Energy (ASX:WGO) and 15% Prospex).  Prospex has an option to increase to 49.9% for €1,725,000 ahead of drilling a well.

The updated Corporate Presentation for Q1-2022 is available on the Company's website at https://bit.ly/3oyc91j .