Prospex, an oil and gas investment company, has announced the firm’s first gas production in northeast Romania. The said production has turned it into a revenue-generating firm.
Gas coming from its Bainet field will be sold to the national grid for approximately €6 per million cubic feet. The production has begun at 700,000 cubic feet per day.
Bainet was drilled in November last year. IT has been linked to the Bilca gas processing plant via a 2.2 km flow line tie back to the existing production infrastructure. The well was drilled to a total depth of 600 m.
In early trading, last Monday, the shares in the Alternative Investment Markets (AIM) listed firm dropped by more than 6.5 percent.
Prospex owns a 50 percent stake in Bainet, an onshore gas field that is located in EIV-1 Suceava concession in northeast Romania.
The firm said that it expected to replicate the success with the other licences of the company, which include the Podere Maiar gas discovery that is located in Italy, and Tesorillo in Spain.
The Podere Gallina permit in Italy contains the Selva gas field, and Prospex is expecting the production to commence in the first half of 2020.
The other site of Prospex, the Tesorillo project in the Cadiz province of Spain. It is in its early days at Tesorillo, however, the company believes that its potential is “substantial.”
Bill Smith, the non-executive chairman of the company, stated: “The commencement of first gas production in Romania is a milestone event, which transforms Prospex into a revenue generative investment company.”
He added: “With multiple similar prospects already identified on the licence, each of which can be explored and developed at relatively low cost, Suceave represents and excellent low risk opportunity to scale up our revenues.”
Last Monday, Prospex also announced the interim results of the company for the six months to June. There was no revenue reported, and its pretax loss dropped to GBP540,761 from GBP2.8 million.