The PXOG Massey business, which holds a 50% stake in economic rights for the EIV-1 Suceava Concession as its sole asset, will be sold to H2Oil in return for GBP215,000 of cash to cover debt owed to the company and a nominal consideration for the company’s shares in the business.
It comes in the wake of a strategic review by the Prospex board through which the company decided to focus on late stage European onshore gas projects.
Prospex is now focussed on the Podere Gallina project in Italy, where gas production is slated to start at the Selva field in the first half of 2021, along with the El Romeral and Tesorillo projects in Spain.
“With the acquisition of El Romeral at the start of the year and with it the proposed addition of another 11 high quality, very low risk prospects it became clear that Suceava would be less core as time progressed,” said Edward Dawson, Prospex managing director.
“As well as providing useful capital, the sale will therefore bring more focus to the remaining core projects in our portfolio, all of which have the potential to hold company-making volumetrics and, importantly, multiple targets that could unlock the substantial resources we have identified.”
In London, Prospex shares rose by 8.9% in Wednesday’s early deals to change hands at 2.29p.