Prospex Energy PLC (AIM:PXEN) Potential sale of Warrego Energy interests in Spanish assets

Prospex Energy PLC, the AIM-quoted investment company focused on European gas and power projects, notes the announcements made on the ASX by Warrego Energy Ltd (“Warrego”) (ASX:WGO) on 10 November 2022, regarding a potential sale of its shares in Tarba Energía S.L. (“Tarba”) as a result of a proposed merger of Warrego with Strike Energy Ltd (“Strike”). Warrego is a co-owner of Tarba and the coventurer in the assets that Prospex holds in Spain.

Warrego has confirmed that it has received from Strike a confidential, non-binding indicative all-share merger proposal that may be implemented through a scheme of arrangement, which is being reviewed by Warrego. The announcement by Warrego also references its shareholding in Tarba and the Company understands that Strike does not wish to participate in assets outside of Australia. Should any scheme of arrangement between Warrego and Strike be agreed, then within a 12-month period, Strike would use best endeavours to sell Warrego’s Spanish assets and additional consideration would be distributed to the Warrego shareholders. It would appear that both parties contemplate divestment of Warrego’s Spanish assets.

The Spanish assets owned and operated by Tarba comprise the El Romeral gas to power plant and related gas concessions near Carmona in Andalucía, southern Spain and the Tesorillo exploration permit in the Cadiz province in Southern Spain, which is 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.

Mark Routh CEO of Prospex commented:

“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. 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.”

A copy of the announcement released on the ASX by Warrego on 10th November 2022 can be found here:

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 or contact the following:

Mark Routh

Prospex Energy PLC

Tel: +44 (0) 20 7236 1177

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