Shares of investment firm Prospex Energy (LON: PXEN) are rallying on Thursday after the company announced that regulatory approval has been received for the acquisition of a 49.9% interest in El Romeral, an integrated gas production and power station operation in southern Spain.
Prospex’s share price is trading at 2.13p, up 14.86% on the day.
The venture was initially announced in December 2019, with Tarba Energia acquiring El Romeral and its two shareholders, Warrego Energy Limited and Prospex financing the deal. Warrego funded the initial consideration of €750,000 with Prospex having three months to elect an ownership stake and refund Warrego for their portion.
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El Romeral is an operational gas and power project which includes three producing wells that supply gas, through its own network, to a 100% project-owned 8.1 MW power station. The project has significant development potential, according to Prospex.
Tarba will assume the day-to-day management and control of El Romeral.
“Ministerial sign-off for the acquisition of El Romeral sees Prospex become an integrated gas and power investment company. For €374,250 we have acquired a 49.9% interest in a gas-to-power project that can generate significant revenues from the 8.1MW power station and which cost €10 million to construct,” commented Prospec non-executive Chairman, Bill Smith.
Prospex also announced a £415,838 convertible loan note and associated warrants to new and existing investors and some board members and staff in settlement of deferred stipends and salaries.