Welcome to Prospex

Prospex Oil & Gas plc is an AIM-quoted Oil & Gas investment company, which is building a sizable oil and gas investment portfolio, focusing on high impact, onshore and shallow, offshore European opportunities located in working hydrocarbon systems.

With a growing portfolio of interests and an expert management team in place, which has a proven track record of generating significant value in the sector, Prospex is well positioned to become a European focused oil and gas player.

About Us

Strategy

Prospex is building a sizable oil and gas investment portfolio, focusing on high impact, onshore and shallow offshore European opportunities located in working hydrocarbon systems.

Utilising the team’s proven track record and global experience, the Company is looking to invest in low capex opportunities in Europe’s oil and gas sector with a particular preference for late stage, drill-ready exploration targets; existing fields which can be reworked; or failed exploration targets where new ideas and the latest technology can be applied.  Once identified and acquired, the Company will seek to create tangible value across its core projects within a 12 month period in order to maximise the impact of its capital and balance its risk-reward profile.

Investment criteria

  • Regions with working petroleum systems
  • Favourable fiscal regimes with low political risk
  • Resource materiality – scale for acquirers and returns for shareholders
  • Scope for technology to unlock latent value
  • Line of sight catalysts for value re-rating
  • Clear monetisation opportunity after value creation

Prospex is building a sizable oil and gas investment portfolio, focusing on high impact, onshore and shallow, offshore European opportunities located in working hydrocarbon systems.

Utilising the team’s proven track record and global experience, the Company is looking to invest in low capex opportunities in Europe’s oil and gas sector with a particular preference for late stage, drill-ready exploration; reworking of existing fields; or failed exploration targets where new ideas and the latest technology can be applied. Once identified and acquired, the Company will seek to create tangible value across its core projects within a 12 month period in order to maximise the impact of its capital and balance its risk-reward profile.

Investment criteria

  • Regions with working petroleum systems
  • Favourable fiscal regimes with low political risk
  • Resource materiality - scale for acquirers and returns for shareholders
  • Scope for technology to unlock latent value
  • Line of sight catalysts for value re-rating
  • Clear monetisation opportunity after value creation

Board & Management

Edward Dawson, Chief Executive Officer & Managing Director

With a BEng and a MSc in investment analysis, Edward has over 15 years’ experience in the oil and gas sector.  He has financed, managed and been a key investor in several oil and gas companies. Positions held include: MD of Peppercoast Petroleum plc and Black Star Petroleum plc; Analyst for RAB Capital’s Energy Fund; Business Development and Finance Manager for Oilexco Incorporated; and a fund manager for Park Place Capital

Bill Smith - Non-Executive Chairman

Bill is a Canadian solicitor with 40 years of experience in corporate finance and is a director of a number of listed and private companies including: Orca Exploration Group (TSXV); Mosaic Capital Corporation (TSXV); and PFB Corporation (TSX).  He was a senior partner of McCarthy Tetrault LLP in Canada and was subsequently Executive Vice President of two listed international oil companies and a listed investment firm. He has extensive experience including a number of start-up ventures in the oil and gas sector.

Richard Mays - Non-Executive Director

Richard is a solicitor in Scotland and has extensive industry, commercial and legal experience.  He is VP and General Counsel at Canadian Overseas Petroleum Limited (TSX and FTSE) and has leadership and senior management experience of other LSE listed companies, including DEO Petroleum plc and Oilexco North Sea Limited.  He has also served as Executive Chairman of Peppercoast Petroleum plc and Black Star Petroleum plc.  Formerly Professor and Deputy Dean of the Aberdeen Business School,

James Smith - Non-Executive Director

James holds a MSc in Petroleum Geology and has over 25 years’ experience in the oil and gas sector. Having started his career as a petroleum geophysicist with Chevron UK in 1988, he became Vice President of Exploration for PanOcean Energy (‘PanOcean’) and in this capacity was instrumental in building the value of PanOcean from US$20m to its eventual sale to Addax Petroleum for US$1.4 billion in 2006. He has extensive experience in exploration, appraisal and development, with proven success in finding oil, delivering positive, high impact results and ultimately building value

Carlos Venturini - Exploration Manager

Carlos is a geologist (BSc) with an MSc in structural geology and over 25 years in geophysical interpretation and oil prospect generation gained with Schlumberger, ENI, Sipetrol, and from his own Libya-based consultancy working for Petrobras, GDF, OMV amongst others.  He is an expert in Mediterranean and African petroleum geology.

Peter Elliot - Business Development

Peter holds a degree in geology and an MSc in petroleum geology.  He has 22 years’ experience in the international oil and gas industry working in New Ventures and Business Development, most recently building oil company JVs in West Africa, including Senegal AGC, Liberia and Equatorial Guinea.  He has also managed exploration contracts and work programmes.

Investments

Hutton Poland

Prospex has a 49% interest in Hutton Poland, 100% holder of the Kolo Licence.

Kolo Licence, Onshore Poland

poland_map

The Kolo block is located in the productive Polish Central Basin, a working hydrocarbon system with prolific source rocks similar to those found in NW Europe and efficient reservoirs similar to those found in the North Sea and the Middle East.

Historical exploration has highlighted oil and gas shows encountered in multiple wells drilled over open structures, providing evidence of a working petroleum system.

Reinterpretation of seismic data has revealed new conventional gas targets in Kolo, including the drill-ready Boleslaw prospect. An independent Competent Person’s Report (‘CPR’) was prepared by AGR TRACS (‘AGR’), which assigned Boleslaw a gross best estimate of 87 bscf and described the prospect as “a worthwhile and attractive exploration opportunity”. Accordingly, a low cost well was drilled targeting the Boleslaw gas prospect. The Well spudded on 10 December 2016 and reached a total depth (‘TD’) of 1,550 metres on 10 January 2017. In line with the pre-drill geological model a Campanian shallower siliceous rich interval, between 980 metres and 1,026m of depth below ground level, and a Santonian sandstone zone, between 1,333m and 1,375m of depth below ground level, were penetrated however no recoverable hydrocarbons were indicated on the mud logs.

The Company and its partners in Kolo will conduct a detailed post-drill technical review of all relevant well and seismic data to determine the way forward with this large exploration licence, which covers an area of 1,150 sq km. The Kolo block has additional prospectivity independent of the Boleslaw gas prospect, including an oil target that has been identified based on the re-interpretation of seismic data using sequence stratigraphy techniques. The oil target is a turbidite system fan, typical of a possible low-stand systems tract.

For a copy of the CPR, please click here.

Other Investments

In addition to its flagship investment in Hutton Poland, Prospex has a number of additional investments within its portfolio, which provide strategic exposure to a range of upstream and downstream activities, offering further value uplift potential.

MOL Hungarian Oil and Gas Public Limited Company (MOL)

MOL is an integrated oil and petrochemicals group, headquartered in Budapest, Hungary, with operations in Romania, Serbia and Slovenia. The company has both upstream and downstream operations, providing Prospex with exposure to Central Europe’s strong GDP growth rates, and is part of multinational oil and gas company MOL Group

For more information please see MOL’s website https://mol.hu/en/

OMV Aktiengesellschaft (OMV)

OMV is the parent company of the OMV Group, an integrated group of oil and gas companies headquartered in Austria. Its upstream operations are focused on Central Eastern Europe, the North Sea, and the Middle East & Africa. Its downstream operations have significant refining capacity, filling stations and a gas pipeline network and storage facilities.

For further information, please see OMV’s website http://www.omv.com

Elephant Oil Limited

Prospex holds a 2.54% interest in Elephant Oil, a UK based oil exploration company with a focus on onshore West Africa. Elephant Oil’s primary asset is Block B, an exploration block in Benin, which Prospex believes has made good exploration progress and with continued interest, could generate significant value.

For additional information, please see Elephant Oil’s website http://elephant-oil.com/

Information for Investors

AIM Rule 26

The information on this page is being disclosed in accordance with AIM Rule 26. Last reviewed on 06/11/2016

Advisers

Nominated and Financial Advisor
Strand Hanson Ltd
26 Mount Row, Mayfair
London W1K 3SQ

Joint Broker
Peterhouse Corporate Finance Limited
3rd Floor, New Liverpool House, 15 Eldon Street, London, EC2M 7LD

Joint Broker
Beaufort Securities Limited
131 Finsbury Pavement, London, EC2A 1NT

Reporting Accountant and Auditor
Adler Shine LLP
Aston House, Cornwall Avenue, London, N3 1LF UK

Legal Advisers
Charles Russell Speechlys LLP
Fleet Place, London, EC4M 7RD

Public and Investor Relations
St Brides Partners Ltd
3 St Michael’s Alley, London, EC3V 9DS

Corporate Governance

The Board is committed to maintaining high standards of corporate governance. While Prospex Oil and Gas plc does not formally comply with an official corporate governance code, the Board has implemented appropriate measures including the establishment of Audit and Remuneration Committees to ensure that the Company adheres to a standard, which is practicable for a company of its size and stage.

The Board is committed to creating value for shareholders; determining strategy, investment and acquisition policy; approving significant items of expenditure; and considering significant financing and legal matters.

The Board has referred certain responsibilities to the Board Committees, which operate within defined terms. The current composition and responsibility of Board Committees is as follows:

Remuneration Committee

The Remuneration Committee consists of Bill Smith and Richard Mays, who also chairs the committee, and is responsible for making recommendations to the Board, within agreed terms of reference, on the Company’s framework of executive remuneration and its cost. The Committee determines the contract terms, remuneration and other benefits for any executive directors, including performance related bonus schemes, pension rights and compensation payments. The Board itself determines the remuneration of the non-executive directors.

Audit Committee

The Audit Committee consists of Richard Mays and Bill Smith, who also chairs the committee, and provides a forum for reporting by the Company’s external auditors. The Committee is responsible for reviewing a wide range of matters, including half-year and annual results before their submission to the Board, and for monitoring the controls that are in force to ensure the integrity of information reported to shareholders. The Committee advises the Board on the appointment of external auditors and on their remuneration for both audit and non-audit work, and discusses the nature, scope and results of the audit with the external auditors. The Committee keeps under review the cost effectiveness and the independence and objectivity of the external auditors.

Corporate Documents

Financial Reports

Circulars

Constitutional Documents

Admission Document

Company Description and Investment Proposition

Prospex Oil & Gas plc is an AIM-quoted Oil & Gas investment company. For a full description of the Company, please go to About Us.

The Company’s Investment Policy, which was adopted on 11 May 2016, can be found here.

Country of Incorporation and Main Country of Operation

The Company was Incorporated in the United Kingdom and the Main Country of Operation is the United Kingdom.

The Company is subject to the UK city code on Takeovers and Mergers.

Details of any other exchanges or trading platforms

The Company is not listed on any other exchanges or trading platforms.

The Company is listed on AIM, under ticker PXOG.

Securities in issue and securities not in public hands

The number of securities in issue is 455,785,836 with 3.2% not in public hands. There are no restrictions on the transfer of securities.

Significant Shareholders

Shareholdings in the Company of greater than 3% and those of directors as advised at 28 Feb 2017 are as follows:

Name %
Simon Chantler 5.0%
Bill Smith 2.0%
Edward Dawson 0.6%
Richard Mays 0.6%
  8.2%

Shares not in Public Hands
The total percentage of shares not in public hands is 3.2% defined as being beneficial holdings of shares held by shareholders holding above 10% and the directors holdings.

Current constitutional documents

For the Company’s current constitutional documents, please go to the corporate documents

Admission Documents and Circulars

For the Company’s admission document and circulars, please go to the corporate documents

News

Historical News

2015

2014

Final Results.pdf
02/06/2014

Director
17/04/2014

Issue of Equity.pdf
20/01/2014

2013

2012

2011

2010

Gallery

12/12/2016

05/12/2016

21/11/2016

09/11/2016

Share Price

Contact

Address

Prospex Oil and Gas plc
26 Dover Street,
London,
W1S 4LY

T. +44 (0)203 586 1009

Registered Office Address
Stonebridge House,
Chelmsford Road,
Hatfield Heath,
Essex, CM22 7BD