Prospex Energy (PXEN ) has delivered an update on its El Romeral power plant in Southern Spain. Prospex holds a 49.9% interest in the power plant through its interest in Tarba Energía.
The plant has been generating steady income for Prospex due to near record-high electricity prices in Spain as well as its ability to run non-stop. The plant, now fully automated, had been running 24 hrs/day, 6 days a week since mid-March. Following monitoring and evaluation, the Tarba executive team has since made the decision to operate the plant 24 hrs/day, 7 days a week as its default operating mode. The plant can dynamically switch generation on and off should electricity prices drop below break-even levels, fully optimising production and income. Prices have rarely dropped below profitability, however.
With increased revenues, Tarba has now repaid in full its two shareholders, Prospex and Warrego Energy, a total of €308,669.97 including interest. Prospex received €153,698.64. After the loan repayment, Tarba holds more than €600,000 in cash. Electricity sales revenue (gross) for Q1 was €1,046,485.
Tarba is set to increase power generation capacity at El Romeral as soon as it secures permits to drill further infill wells on the El Romeral concessions. The first two infill wells will ensure 100% output capacity at the plant.
Mark Routh, Prospex's CEO, further commented:
"The current energy crisis has highlighted the need for long-term energy independence and security of supply, not only in Europe but globally. Investment in onshore, indigenous local projects such as El Romeral, is key if we are to address the challenges posed by the rise in global energy prices and volatility in international markets. We are delighted to be part of the solution, albeit in a small way."
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