It follows the acquisition of the El Romeral gas-to-power project earlier this month
It is issuing 50mln new shares priced at 1.5p each and participating investors will also receive share warrants (one warrant per two placing shares, lasting 2 years, and exercisable at 3p each).
Proceeds will primarily be used at the El Romeral gas-to-power project in southern Spain, Prospex said, along with the Podere Gallina licence onshore Italy where first gas from the Selva field is expected later in 2021.
Prospex completed the acquisition of a 49.9% interest in El Romeral earlier this month. It comprises three gas wells and an 8.1 megawatt power station.
“With the acquisition of the El Romeral gas and power project complete and the appointment of a new government in Italy, which has the potential to speed up the final approval process for the development of the Selva gas field, the funds raised will enable us to move quickly at both projects,” said chairman Bill Smith.
He added: “the acquisition of El Romeral and the development of Selva could see Prospex exit 2021 with an annualised net production run rate equivalent to 7,500,000 scm [standard cubic meter] per day. At current gas prices, this equates to annualised revenues several times greater than our historic annual corporate costs.”
“We anticipate this level of production would propel Prospex into a position whereby the significant revenues and cashflow generated will enable us to pursue the additional low risk exploration and development opportunities that have been identified across both assets to grow production and revenues further.”
Read More: Prospex Energy PLC raises £750,000 to advance Spanish gas-to-power project