Prospex Energy has signed a binding agreement to acquire 100% of Tarba Energía, enhancing its stake in European gas projects.
The acquisition involves purchasing Warrego Energy’s entire shareholding in Tarba, which holds investments in the El Romeral production concessions and associated gas-to-power plants in southern Spain.
Under the terms of the shareholders agreement with Warrego, Prospex, through its subsidiary PXOG Muirhill, exercised its pre-emption right to purchase Warrego’s shares.
This right was triggered by a share sale and purchase agreement between Warrego and a third-party buyer.
The acquisition price for Warrego’s shares totals €652,725 ($709,205), with €100,000 payable upon approval of drilling permits for three of five wells under regulatory review.
Prospex will fund the acquisition using existing cash resources and has until 19 April 2025 to complete the transaction.
Prospex CEO Mark Routh said: “I am extremely pleased to announce the increased ownership in Tarba, the El Romeral concessions and the related gas-to-power plant in Carmona. Importantly the acquisition is being made using accumulated cash reserves from our investment portfolio and is expected to lead to significantly increased production revenue once the permits to drill the five new wells on the EL Romeral concessions are approved.
“In terms of prospective gas resources acquired in the El Romeral asset alone, the equivalent price of $0.092/boe [barrel of oil equivalent] 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.”
Additionally, the buyer must pay Warrego a 5% gross overriding royalty on future Tesorillo Project revenues.
The purchase price, matched to the third-party offer, reflects an independently derived value for the assets.
Currently, the El Romeral asset accounts for 10% of Prospex’s net production. Post-acquisition, it will represent approximately 20% of the company’s enlarged net production.
Prospex’s other assets include the Viura field in northern Spain and the Selva Malvezzi asset in Italy.
Drilling operations at the Viura gas field, operated by HEYCO Energy, are delayed by six to eight weeks.
The operations are now expected to commence in May 2025 due to operational reasons.
“Prospex Energy to acquire Warrego Energy’s shares in Tarba Energía” was originally created and published by Offshore Technology, a GlobalData owned brand.
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Source: finance.yahoo.com