Prospex Energy plc said its partner could exit their Spanish onshore gas joint venture in a proposed merger with a third company.
PROPOSAL
Prospex and Warrego Energy Ltd are co-owners in Tarba Energía S.L which owns and operates the El Romeral gas-to-power plant.
Tarba also owns related gas concessions near Carmona in Andalucía and the Tesorillo exploration permit in Cadiz, currently suspended.
Prospex owns a 49.9% working interest in El Romeral and a 15% working interest in Tesorillo, with Warrego owning 50.1% and 85% respectively.
“There is a shareholders agreement governing the Tarba shares under which, among other rights, Prospex has an option to increase its working interest in Tesorillo to 49.9% upon payment of €1.725 million prior to the drilling of an appraisal well,” said Prospex.
The proposed non-binding indicative all-share merger is between Warrego and fellow Australian company Strike Energy Ltd.
Prospex said it understood that Strike had no wish for assets outside of Australia and that it appeared that both parties contemplated selling Warrego’s Spanish assets.
“Should any deal be struck by Warrego the focus by any potential new owner is most likely to be on the asset base in Western Australia,” added Prospex chief executive Mark Routh.
“This may result in the disposal of Warrego’s Spanish portfolio, which is in no way a reflection of the quality of the assets.
“We will continue to monitor the progress of the negotiations between Warrego and Strike and update the market in due course.”