LONDON: Prospex Energy PLC, an AIM-listed company specializing in European gas and power projects, announced its agreement to acquire the remaining shareholding in Tarba Energía S.L. held by Warrego Energy Ltd. This acquisition makes Prospex the sole shareholder of Tarba, consolidating its investments in Southern Spain’s El Romeral production concessions and exploration permits.
Upon completion, Prospex will hold a 100% indirect working interest in the El Romeral asset and exploration permits, with a total acquisition cost of €652,725, funded entirely through existing capital resources. The deal, priced at approximately $0.016 per thousand cubic feet of gas, reflects a competitive valuation of the assets.
Mark Routh, CEO of Prospex Energy, expressed optimism about the transaction, citing its potential to significantly increase production and revenue once permits for drilling five new wells in the El Romeral concession are approved. He also highlighted the favorable pricing and future exploration opportunities within the concessions.
Under the terms of the shareholders’ agreement, Prospex exercised its pre-emption right to match an offer for Warrego’s shares, triggering the acquisition process. €100,000 of the purchase price is contingent upon regulatory approval for drilling three of the proposed wells.
The El Romeral asset is expected to represent approximately 20% of Prospex’s net production post-acquisition, up from the current 10%. Tarba reported total assets of €2.9 million as of December 2024, although it incurred a net loss of €570,000 that year.