Prospex Energy plc has signed a binding agreement to buy its joint venture partner’s shares in the gas production concessions and exploration permits in Southern Spain.
PRODUCTION
The company and Warrego Energy Ltd operate through Tarba Energia S.L., with a 49.9 – 50.1% share in the El Romeral production concessions, and associated power plant, near Carmona.
Tarba also owns the currently suspended Tesorillo and Ruedalabola exploration permits, in which Prospex holds 15%, in the Cadiz province.
On completion of the agreement, Prospex will own a 100% indirect working interest in the three projects for a total €652,725, funded from its own accumulated cash reserves.
The planned purchase follows a share sale and purchase agreement between Warrego and a third-party buyer.
Prospex subsequently exercised its pre-emption right to buy all of the Warrego shares on 19 March 2025, with a further 30 days to complete the transaction.
A competent person’s report gives gross un-risked mid-case prospective resources in the three El Romeral concessions of 90 billion cubic feet across 11 low-risk prospects mapped on the concessions.
The company said that the acquisition had the potential to increase “significantly” production and revenues from the El Romeral concession on approval to drill five new wells.
El Romeral currently represents 10% of the company’s net production, with 55% from the Viura asset in Northern Spain and 35% from the Selva Malvezzi asset in northern Italy.
Following completion of the acquisition, El Romeral will represent approximately 20% of Prospex’s enlarged net production.
Chief executive Mark Routh added: “I am extremely pleased to announce the increased ownership in Tarba, the El Romeral concessions and the related gas-to-power plant in Carmona.
“In terms of prospective gas resources acquired in the El Romeral asset alone, the equivalent price of US$0.092/Boe is an excellent price by almost any measure.
“Prospex sees further upside in the concessions with further mapped structures to evaluate and drill once the first five wells have been permitted and drilled.”