LONDON: Prospex Energy PLC (AIM: PXEN), the investment company focused on European gas and power projects, has qualified to apply for onshore open acreage hydrocarbon exploration licences in Poland.
In March 2024, Prospex incorporated PXEN Tatra, a 100% owned subsidiary and on 21 May 2024 applied to the regulator in Warsaw for the pre-qualification to apply for licences. On 3 October 2024 Prospex officially secured the qualification to apply for licences in Poland.
Prospex has identified and hopes to acquire prospective blocks in Poland, which meet the Company’s stringent investment criteria; namely, areas which have proven gas production, high potential prospectivity in the targeted geological horizons, high potential for new reserves to be unlocked and can be brought onstream within two to three years. Details of the new licence areas will be made public when the official applications are publicly gazetted after the submission to the Ministry of Climate and Environment which is expected before the end of October 2024. Licence applications will be submitted initially based on 100% working interest and if successful, Prospex expects the licences to be granted by Q1 2025.
Mark Routh, Prospex’s CEO, commented: “After several months of preparation, I am very pleased to announce that Prospex is applying for licences to search for and develop onshore natural gas in a third European nation. Poland is well known for its hydrocarbon resources and has a regulatory regime which is supportive of natural gas investment with a track record in quickly approving permits for hydrocarbon exploitation activities as the nation focusses on its security of energy supply.
“There are several reasons for choosing to expand into Poland, aside from the favourable regulatory environment and prospective hydrocarbons, one of them being our experience in country. The Prospex senior team has valuable prior exploration experience in Poland and is very familiar with the regional geology and importantly, the regulatory environment. During the operational phase in 2016 Prospex met all local regulatory commitments, which puts the Company in a good position to leverage the experience and relationships gained at that time.
“The Prospex technical team has identified attractive onshore areas for the application and we hope to be able to announce a positive outcome from the applications in Q1 2025.
“The Company’s strategy is to add additional geographic reach to the existing portfolio of producing assets in a cost-effective manner. The Company’s entry into Poland has been financed entirely from production income.
“I look forward to updating shareholders on progress with these applications in the coming months.”