Petrel Energy Limited (ASX: PRL) is a petroleum exploration company which is into the conventional and unconventional opportunities most prominently in the North America. The Company is focused on an emerging onshore shale gas development in the Barnett Shale region of Texas. The company has its projects located in the geographies such as Australia, Spain, and Uruguay. The company’s primary objective is to identify high quality and potentially material energy assets, so that company can use its core competence in the form of people and their experience & expertise to create shareholder’s wealth over a shorter timeframe.
The company has via a recent ASX release stated that the AIM-listed Prospex Oil and Gas Plc (“Prospex”) has completed the subsequent closing for an additional 12.5% in Tarba Energia SRL and the Tesorillo Project in southern Spain. As per the share purchase agreement which was signed on the 18 December 2017, it was agreed that the Prospex could purchase up to a 49.9% of Tarba ordinary shares in three instalments. The consideration which has been paid for acquiring such a stake has been via payment of Euro 48,750, which was done at first closing for 2.5% of the stake and an additional Euro 280,000 that was paid today at second closing for 12.5% to fund the current magneto telluric programme. Hence, now remains the final consideration of Euro 1,725,000 which would be payable at the final closing for 34.9%. However, this final closing of the deal will be subject to the conditions of completion of the ongoing programme and the requisite consent of an appraisal of the Tesorillo well for drilling.
On the closure of this deal, Prospex will fund Petrel’s share of an agreed Tesorillo work programme which would cost an estimated Euro 3,823,000 and which includes the current magneto telluric programme. The program, on getting successful would allow the companies to target the Almarchal-1 discovery drilled in 1956. This well was excavated in the year 1956 and the exploration firm had found a thick section of possible gas pay which upon testing flowed gas.
The managing director of the firm, Mr. David Casey has said that the results of this year’s field program have proved to be very encouraging. In particular, the liaison that has been developed by Prospex with the community residing therein and leading local experts at the University of Granada who assisted with detailed structural geology mapping has been exemplary.
Meanwhile, the share price of the company has fallen by 20 percent in the past six months as on 13 December 2018 and the stock was under a trading halt since December 15, 2018. Company’s shares last traded at $0.002, with a market capitalization of circa $4.83 Million. The group lately updated the market over reverse takeover offer wherein PRL will be merging with Warrego.