TIDMPXEN
RNS Number : 2370D
Prospex Energy PLC
28 June 2021
Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and
Gas
28 June 2021
Prospex Energy PLC ('Prospex' or the 'Company')
Rollover of 2018 Loan Notes
Highlights
-- 83% of holders of 2018 Loan Note agree to rollover into new unsecured 2021 Loan Note
-- Terms of 2021 Loan Note largely the same as 2018 Loan Note
save for 18-month extension to repayment dates and increase in
interest rate to 12% from 10%
-- Board believes high uptake of rollover reflects progress made
across European gas and power portfolio
Prospex Energy PLC, the AIM quoted investment company focused on
European gas and power projects, is pleased to announce that the
majority of holders of the Company's 2018 unsecured loan note
('2018 Loan Note') have agreed to rollover their combined holdings,
totalling GBP321,680.68, into a new unsecured loan note ('the 2021
Loan Note'). In line with this, the Company is issuing
GBP321,680.68 of the 2021 Loan Note to existing holders of the 2018
Loan Note ('the Subscribers'), including several directors of the
Company. The Directors believe the agreement of the Subscribers to
rollover into the new loan note reflects the considerable progress
made by Prospex over the last 12 months across its portfolio of
onshore European gas and power projects.
Under the terms of 2018 Loan Note, holders are entitled to the
outstanding capital returned in equal instalments in June 2021,
December 2021, and June 2022. The terms of the 2021 Loan Note
reflect those of the 2018 Loan Note except all the repayment dates
have effectively been extended by 18 months to December 2022, June
2023, and December 2023, while the annualised interest rate is now
12% versus 10%. The 2021 Loan Note will pay 6% interest every six
months, with the first payment due on 31 December 2021.
Prior to the issue of the 2021 Loan Note, there was a total of
GBP386,016.82 of 2018 Loan Note in issue. Following the agreement
of 83% of holders of 2018 Loan Note to rollover into the 2021 Loan
Note (and the subsequent issue of GBP321,680.68 of the 2021 Loan
Note), a total of GBP64,336.14 of 2018 Loan Note remains
outstanding, the terms of which have not changed.
Prospex non-executive Chairman, Bill Smith, said, "The Directors
believe the support of the Loan Note holders who have agreed to
rollover into the 2021 Loan Note reflects the considerable progress
made by Prospex over the last 12 months. In March 2021, we
completed the acquisition of a 49.9% interest in El Romeral gas and
power operation in Spain, which adds three producing wells and an
8.1 MW power station to Prospex's portfolio. In April 2021, full
environmental approval was received for the development of the
Selva Malvezzi Gas-Field ('Selva') in northern Italy, which paves
the way for the grant of a full production licence from Italy's
Economic Development Ministry.
"Following environmental approval, development and preliminary
work has now commenced to prepare Selva, which has gross gas
reserves of 13.3bcf (2P), for production in mid-2022. Together with
ongoing preparatory and permitting work for a drilling campaign at
El Romeral targeting an increase in gas supply at the project to
bring capacity utilisation at the power plant closer to 100%, there
is much to look forward to as we focus on building a highly cash
generative business focused on European gas and power
opportunities."
Further Information on the Subscribers and the 2021 Loan
Note
The GBP321,680.68 2021 Loan Notes have been issued to eight
individual subscribers, including the following two Directors of
the Company:
Director Amount
Bill Smith GBP40,210.09
-------------
James Smith GBP20,105.05
-------------
Under the terms of the 2021 Loan Notes, the Company can elect to
pay the interest in Euros by giving 10 business days' notice. 2021
Loan Note holders can elect, on a change of control of the Company,
where a single party has over 50% of the issued share capital of
the Company, to convert some or all of their 2021 Loan Notes into
ordinary shares at the prevailing market price.
The Company can elect to repay the 2021 Loan Notes in full or
part at any time by giving the holders 30 days' notice otherwise
the Company shall repay the 2021 Loan Notes in three equal
instalments on 31 December 2022, 30 June 2023, and finally 31
December 2023.
Related Party Transaction
The issue of the 2021 Loan Notes to Bill Smith and James Smith
is a related party transaction pursuant to Rule 13 of the AIM Rules
for Companies. The Directors independent of the transaction, being
Edward Dawson and Richard Mays, having consulted with the Company's
Nominated Adviser, Strand Hanson Limited, consider that the terms
of Bill Smith and James Smith's participation in the 2021 Loan Note
subscription to be fair and reasonable insofar as the Company's
shareholders are concerned.
This announcement contains inside information.
* * ENDS * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Energy PLC Tel: +44 (0) 20 3948
1619
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
Duncan Vasey Peterhouse Corporate Finance Tel: +44 (0) 20 7469
0932
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236
Cosima Akerman 1177
Notes
Prospex Energy PLC is an AIM quoted investment company focussed
on high impact onshore and shallow offshore European gas and power
opportunities. The Company acquires undervalued projects and then
applies low-cost re-evaluation techniques to identify and de-risk
prospects. Prospex currently holds a portfolio of three projects:
the Podere Gallina Permit in Italy where first gas at the Selva
field is targeted for 2021; the El Romeral gas and power project in
Spain, which includes three producing wells that supply gas to a
100% project-owned 8.1MW power plant; and the large scale Tesorillo
gas project in southern Spain, which has the potential to hold
gross un-risked Prospective Resources of 830 Bcf of gas (Best
Estimate), with upside in excess of 2 Tcf. The Company's strategy
is to rapidly scale up gas production in the short term to generate
internal revenues that can then be deployed to develop the asset
base and increase production further.
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