Prospex Energy PLC El Romeral: Income Update (9790W)

TIDMPXEN

RNS Number : 9790W

Prospex Energy PLC

30 December 2021

Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas

30 December 2021

Prospex Energy PLC

El Romeral: Income Update

Prospex Energy PLC, ('Prospex' or the 'Company') the AIM quoted investment company (AIM: PXEN) focused on European gas and power projects, is pleased to provide an update on the El Romeral power plant in southern Spain ('El Romeral') which is currently providing a very healthy income from selling electricity into the spot market in Spain at record levels. The Company holds a 49.9% working interest in El Romeral through its interest in Tarba Energía ('Tarba').

Highlights:

   --    Loan repayment made by Tarba to its shareholders of EUR300,000 on 29 December 2021 
   --    Prospex's share of this is EUR149,700 
   --    Tarba has now repaid its shareholders 40% of the EUR750,000 acquisition cost of El Romeral 
   --    Further loan repayments expected in 2022 

As a direct result of the strong electricity prices which have been realised in Q4 2021, on 29 December 2021, Tarba made a loan repayment of EUR300,000 to its shareholders. Prospex's share of this is EUR149,700. This will further bolster the Company's cash flow position into the New Year. This reduces the shareholder loan balance in Tarba for the El Romeral asset.

From September to December 2021 gross monthly income from El Romeral has averaged more than EUR241,000 per month, a significant increase from previous periods due to the high electricity prices in Spain. Indeed, spot prices in excess of EUR400/MWhr have been seen in Spain, and the average price between September to December 2021 has been more than EUR180/MWhr. For comparison, from March to August 2021 (when the El Romeral plant was acquired) the price achieved averaged EUR76/MWhr which translated to average gross monthly income of EUR93,000 per month.

The high income from electricity generation at the plant has been augmented by the ability of the plant to run 24-hour operations regularly. The initial outlay by Tarba for the plant optimisation and automation project of EUR90,000 is now expected to have delivered a return on investment by the end of January 2022.

Since the El Romeral plant is now comfortably meeting its running costs and since forward curve electricity prices are looking very strong, Prospex expects that during 2022 further loan repayments are likely to be passed up to its shareholders.

Mark Routh, Prospex's CEO, commented:

"This loan repayment by Tarba Energía to its two shareholders is 40% of the EUR750,000 acquisition cost of El Romeral. With electricity spot prices at an all-time high and the forward curve looking extremely robust, I am confident that Tarba can comfortably make further loan repayments up to its shareholders over the coming year. This means that Prospex is likely to be generating a net income towards its overheads and operating costs, something which will sit very well with shareholders and potential investors alike."

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: [phone] 
                                                              1177 
Rory Murphy         Strand Hanson Limited     Tel: [phone] 
 Ritchie Balmer                                               3494 
Colin Rowbury       Novum Securities Limited  Tel: [phone] 
 Jon Belliss                                                  9427 
Duncan Vasey        Peterhouse Capital        Tel: [phone] 
                     Limited                                  9797 
Susie Geliher       St Brides Partners        Tel: [phone] 
 Catherine Leftley   Ltd                                      1177 
 

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December 30, 2021 01:59 ET (06:59 GMT)