Prospex Energy PLC, the AIM quoted investment company focused on European energy projects, is pleased to provide an update on the production strategy from its El Romeral power project near Carmona in Southern Spain in which the Company holds a 49.9% working interest through Tarba Energía S.L. (“Tarba”).
The owners of Tarba (Prospex and Warrego Energy Limited) have agreed to operate the El Romeral power plant 24 hours per day for six days per week until further notice. The reservoir performance and the operating regime are being monitored closely and the Tarba management is confident that the right balance is being achieved between ultimate recovery of remaining reserves and maximising electricity output and therefore income at this time.
Over the last two weeks the power plant has been successfully operating 24 hours a day, six days a week securing the recent high electricity prices. The power-plant automation and operational procedures have now been fully tested to enable continuous operation whenever required.
Currently Tarba has cash in hand of more than €400,000 and the forecast revenue for March 2022 is likely to exceed €500,000 at current forward curve electricity prices[1].
The reservoir modelling work by Tarba will continue to forecast gas production profiles from the El Romeral concession using a suite of production strategies including further sensitivities on rates, pressures and ultimate recoveries. The production strategy will be regularly reviewed and optimised based on sound reservoir management.
Mark Routh, Prospex’s CEO, commented:
“The El Romeral concession has been producing gas for the power plant for twenty years and it was essential that the rate of production decline was thoroughly understood before instigating continuous plant operations. We now know that continuous operations are feasible and safe. I am very proud of our management and operating team at the plant who have embraced this new operating regime which was made possible by the success of the plant upgrades installed last December.”
“We have selected the optimum production strategy based on the latest reservoir modelling which strikes the right balance between maximising recovery and optimising electricity production at this crucial time for the supply of energy in Europe. Reservoir modelling will continue and our production strategy will be optimised to match the availability of new gas production from our planned infill wells in the El Romeral concession.”
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.
* * ENDS * *
For further information visit www.prospex.energy or contact the following:
Mark Routh
Prospex Energy PLC
Tel: +44 (0) 20 7236 1177
