Prospex raises £3.34m for stake in Viura

Prospex Energy plc has raised £3.34 million to acquire up to a 10% indirect interest in the Viura producing gas field in northern Spain.

HEYCO

The company’s original placing and subscription was of 54.5m new ordinary shares of 0.1p, at 6 pence per share.

The placing increased from 47.5m new ordinary shares announced yesterday to 47.8m today.

A total 7,833,333 new ordinary shares were placed to qualified investors, raising approximately £470,000.

Prospex said that Heyco Energy Group Inc, majority owner of Heyco Energy Iberia (HEI), had indicated it would subscribe for 41,666,668 new ordinary shares for £2.5m.

Certain existing shareholders intended to subscribe for 5,833,332 new ordinary shares for approximately £350,000.

Additionally, certain Prospex directors participated for 1,166,665 shares for an aggregate £70,000.

Non-executive chairman Bill Smith and non-executive director Alasdair Buchanan each subscribed for 416,666 shares for £24,999.96 each, and NED Andrew Hay subscribed for 333,333 for £19,999.98.

Following admission, the company will have 388,217,868 ordinary shares of 0.1p each in issue, with voting rights. No shares are held in treasury.

A separate retail offer for up to 8,333,333 new ordinary shares at the issue price is expected to raise up to an additional £500,000.

VIURA

Prospex added it would use the proceeds to acquire a minimum 7% of operator HEI and up to 10% if the retail offer reached the target.

HEI will use the funding to part finance new development well Viura 1B which spud on 24 June.

The field has original gas in place of 211 Bcf (6 Bcm) and 2P reserves of 105 Bcf (3 Bcm), with 16 Bcf (0.5 Bcm) produced to date.

Viura represents “more than 80% of Spain’s natural gas production”.

Should Prospex acquire 10% of HEI, the company will be responsible for 20% of 2025-2026 costs of a further £6.85m.

HEI owns 58.7964% of Viura, Sociedad de Hidrocarburos de Euskadi, S.A. (Shesa) holds 37.6901% and Oil and Gas Skills S.A. has 3.5135%.

On 5 April 2024, HEI agreed to acquire Shesa’s participation in the Viura development, subject to conditions precedent.

The Viura interest will be Prospex’s third producing gas asset onshore in Europe after El Romeral east of Seville and Selva in north Italy.

Heyco Energy last year acquired Egdon Resources plc.