Prospex Oil & Gas (PXOG) is now a revenue-generating company after the commencement of gas production at its field in Romania.
The Bainet gas field on the EIV-1 Suceava Concession in the north east of Romania started production at an initial rate of c.0.7mmscf/day.
Gas from the field is now being sold into the national grid run by Transgaz, the state-owned operator of natural gas in Romania.
The gas is currently priced at approximately €6 per mcf, and represents Prospex’s first production revenues from its portfolio.
Prospex's wholly-owned subsidiary PXOG Massey Limited holds a 50% interest in the 980 sq km Concession.
Prospex non-executive Chairman, Bill Smith, said: "The commencement of first gas production in Romania is a milestone event, which transforms Prospex into a revenue generative investment company.
“With multiple similar prospects already identified on the licence, each of which can be explored and developed at relatively low cost, Suceava represents an excellent, low risk opportunity to scale up our revenues.”
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The operator has currently elected to target an initial flow rate of c.0.7mmscf/day, which is approximately equivalent to 20,000 scm/day, but production rates may be adjusted depending on well performance and market demand.
As for the future of its other licences, Bill Smith said: "We intend to replicate this success elsewhere on our other licences, including the Podere Maiar gas discovery onshore Italy which is being advanced towards production, and Tesorillo in Spain where work is underway to de-risk up to 2TCF of gross prospective resources.
“With activity ongoing across our asset base, I look forward to providing further updates on our progress.”
Prospex Oil and Gas Plc is an AIM-listed investment company focused on high impact onshore and shallow offshore European opportunities with short timelines to production.
The company's strategy is to acquire undervalued projects with multiple, tangible value trigger points that can be realised within 12 months of acquisition and then applying low cost re-evaluation techniques to identify and de-risk prospects.
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