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

4 February 2025

Prospex Energy plc

("Prospex" or the "Company")

Spanish Ministry Initiates Statutory EIA Consultation to drill five further wells on El Romeral Production Concessions

Prospex Energy plc (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to announce that it has received confirmation that the Spanish regulatory authority has initiated the Statutory Consultation of the Environmental Impact Assessment ("EIA") for the application to drill five new natural gas wells on the production concessions owned by Tarba Energía S.L. ("Tarba") known as El Romeral 1, 2 & 3 on 24 January 2025.  Tarba generates electricity from its own natural gas production from the concessions, which in July 2024 were granted a ten-year extension to July 2034.  The five wells are planned to target the five optimum structures on the El Romeral concessions, which will produce biogenic gas from shallow subsurface horizons.  The depth of the wells average about 700 metres and will each take no longer than 3-4 weeks to drill once a suitable drilling rig has been mobilised.

Tarba submitted the EIA to Spain's Ministry for the Ecological Transition and the Demographic Challenge (the "Ministry") in Madrid in May 2024 prior to confirmation that the El Romeral Concessions were granted an extension for 10 years until July 2034.

The Ministry has sent the EIA and supporting technical documents to the Area of Industry and Energy of the Government sub-delegation in Seville and to a list of 29 statutory consultees, including public administrations, stakeholders and institutions or associations representing general interests.  The period of statutory consultation addressed to the general public will commence after the EIA application is publicly gazetted, which is expected to happen in the upcoming weeks.  Officially this statutory consultation period is open for 30 working days, during which, Tarba will respond to questions and requests for further information from interested parties.

At the end of the gazetting period, the Junta de Andalucía will report back to the Ministry in Madrid with its findings and recommendations.  From this point the Ministry in Madrid is meant to take between 90 to 180 days for the final review and approval, giving time to gather its internal final EIA evaluation, together with all the mandatory statutory reports from those public administrations and institutions before it can issue an approval resolution granting the permits to drill the wells.

Whilst Tarba waits for the regulatory approvals process to complete, Tarba will progress with key drilling preparatory work, including detailed well design, sourcing of essential long-lead items, and securing the necessary contractors to deliver the five new production wells.

Mark Routh, Prospex's CEO, commented:

"This is a positive step in the process to approve the permits to drill five new wells on the El Romeral concessions.  Having prepared an extremely thorough and professional environmental impact assessment study, including a statutory 12-month monitoring of the potential impact on local flora and fauna, Tarba has now progressed to the stage of statutory consultation with interested parties mostly located in Andalucía.  Natural gas will continue to play a crucial role in Europe's energy security and the ecological transition process, and the production of shallow biogenic gas from the onshore El Romeral concessions will have a carbon footprint which will be a small fraction of the comparative carbon footprint resulting from the importation of natural gas by pipeline, and even smaller when compared to liquefied natural gas imports.

"It is important to highlight that the El Romeral power plant will reach full output capacity from production of just two of these five wells.  Any extra gas from the remaining new wells or any future wells drilled on the concessions will support expansion plans at the power plant as well as the ability to supply natural gas directly to the grid.  We are very much excited by the development potential of El Romeral and look forward to keeping shareholders updated on the permitting process."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

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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 will 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 El Romeral and Tarba

The El Romeral power plant is operated by Tarba, which is based near Carmona east of Seville in the province of Andalucía, Spain.  The El Romeral asset is co-owned through Tarba by Prospex which has a 49.9% working interest and Warrego Energy Limited which has a 50.1% working interest. Warrego Energy is now wholly owned by Hancock Energy (PB) Pty Ltd in Perth Western Australia.

The El Romeral gas and power project in Spain, has gas production wells which supply gas to an 8.1MW power plant near Carmona in Southern Spain.  It is currently operating at about 30% of its full capacity because Tarba is waiting on the permits to drill five further infill wells on the concessions to increase production.  Tarba is already categorised as a hybrid energy provider with the successful installation of photovoltaic panels on the roof of the plant in August 2022.  Tarba sells electricity generated from the plant on the spot market in Spain.  The El Romeral licences comprise three contiguous production concessions.

Tarba is pioneering a new hybridisation model that combines natural gas and solar energy as sources for electricity generation in the ecological transition process by developing a project to produce 5MW electricity using photovoltaic solar energy ("Project Helios").

In 2023 and 2024, Tarba supplied enough energy to cover the electricity consumption of approximately 6,700 homes in the area, even when operating the facility at one third of its capacity.  With future wells to be drilled on the concessions, the plant is expected to reach its maximum nameplate production capacity to sell 8.1MW of power into the grid. The combination of further natural gas extracted from the concessions and the new photovoltaic generation is expected to cover the energy supply of 20,100 homes per year.