Wednesday, September 27th 2023

Prospex Oil & Gas

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Prospex Oil & Gas are an aim listed investment company with assets in Romania, Italy, and Spain. The company has a focus on high impact low capex onshore or shallow offshore assets, Prospex’s focus is to deploy its wealth of experience in identifying proven working petroleum systems that consist of the re-working of existing fields or near-term drill ready operations. The board believes it has a depth of experience in generating shareholder value and whilst the stock has traded hands substantially higher we can clearly see the recent decline below the latest placing price (0.60p) could well offer buyers an opportunity.

Prospex were thrilled to announce (November 2017) they had been advised by Raffles Energy SRL (operator) that a new gas discovery has been made at the Bainet-1 well (‘Bainet-1’ or ‘the Well’) Bainet-1 was drilled to a total depth of 600m and encountered 9m of reservoir with 8m of net gas pay consisting of a good quality Sarmatian sandstone reservoir, similar to that found in fields producing elsewhere in the Concession. As well as in analog fields in the Bilca Gas Production Area of the adjoining EIII-1 Brodina Block. The two intervals tested by Bainet -1 within the main gas pay zone were perforated at a measured depth of 513.3 to 514.8m and 516.3 to 517.3m.During the final 11-hour test, natural gas containing over 99% methane flowed at a rate of approximately 33,000 cubic meters/day through a 8mm choke. Experimental production is expected to commence Q2 2018.


Six days earlier on the 21st November, the consortium drilling the Selva gas field commenced operations under the stewardship of Australian listed Po Valley Energy (“PVE”), at that the Podere Maiar-1d appraisal/redevelopment well, on the 19th January 2018 Prospex informed the market that it has been advised by the operator that strong flow rates from testing operations had confirmed a significant commercial gas discovery at the Podere Maiar-1d appraisal/redevelopment, Bill Smith Prospex chairman said ” the data exceeded our initial flow test expectations ”. Given the short space of time in which Prospex Oil & Gas have managed to secure two potential commercial gas discoveries coupled to the acquisition of up to 49.9% of the Tesorillo Project in Spain (containing a best estimate prospective resource of up to 2TCF) one could argue that news flow will come thick and fast. 
Whilst the oil & gas industry is fraught with potential banana skins, it is apparent that the value of both Romania & Italy is yet to be fully priced into the companies valuation, indeed it is imperative for Prospex to deliver a continuous flow of bullish news, however we believe Spain potentially presents the real jewel in the crown, and thus advise TMS readers to address MD Ed Dawsons recent comments from an interview conducted by house Broker Beaufort Securties, who was rumored to have raised Prospex £1.2m in a little over 30 minutes adding further validation to the upside potential. 
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