JOHANNESBURG (miningweekly.com) – Aim-listed investment firm Prospex Oil & Gas has agreed to acquire up to a 49.9% interest in the Tesorillo gas project in the Cadiz province, in southern Spain.
Tesorillo contains a known gas discovery, estimated to hold gross unrisked prospective resources of 830-billion cubic feet of gas, upside in excess of two-trillion cubic feet over its two petroleum exploration licences, the Tesorillo and Ruedalabola permits, covberin 38 000 ha.
The acquisition will be carried out in three tranches, comprising of a 2.5% stake for €48 750, effective immediately; the option to buy another 12.50% for €280 000 and the option to buy a further 34.9% for €1.72-million when drilling of a well is due to start.
Prospex's take up of the Stage 2 and 3 options will be based on the results of an upcoming work programme planned by permit owner Schuepbach Energy Espania to further delineate and derisk the project's prospectivity.
It is envisaged that on acquisition of the third tranche, a drill programme would have been agreed.
The acquisition is in line with the company's strategy to build a portfolio of high impact onshore and shallow offshore European opportunities with short timelines to production.
This year, the company has acquired interests in three onshore European projects and participated in the drilling of two new wells, both of which have resulted in gas discoveries.