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Key Points:
- Prospex Energy PLC has officially qualified to apply for hydrocarbon exploration licences in Poland, with applications expected by the end of October 2024.
- The company’s strategy focuses on acquiring blocks with proven gas production and the potential for new reserves, aiming to bring them onstream within two to three years.
- Prospex has engaged local experts and established a subsidiary, PXEN Tatra, to facilitate the application process and manage operations in Poland.
Prospex Energy PLC (LSE:PXEN), a prominent investment company concentrating on gas and power projects across Europe, has announced a significant milestone: the company is now qualified to apply for onshore hydrocarbon exploration licences in Poland. This development marks an essential step in Prospex's strategic expansion into the European energy market.
The journey towards this qualification began in early 2024 when Prospex incorporated a wholly-owned subsidiary, PXEN Tatra, on March 1. Subsequently, on May 21, 2024, the company submitted its pre-qualification application to the regulatory body in Warsaw, a vital prerequisite for the licensing process. The Polish Ministry of Climate and Environment approved the pre-qualification on October 3, 2024, allowing Prospex to move forward with its plans for hydrocarbon exploration.
Identifying the right areas for exploration is crucial for the company's strategy. Prospex has pinpointed several prospective blocks in Poland that align with its stringent investment criteria. These criteria include a history of proven gas production, high potential for new reserves, and the feasibility of bringing resources onstream within a two- to three-year timeframe. The details regarding these prospective licence areas will be disclosed publicly following the formal application submissions to the Ministry of Climate and Environment, which are anticipated to occur by the end of October 2024.
The groundwork for these applications was laid in late 2023 when the Prospex Board approved a low-cost plan for pursuing licences in Poland. The technical team conducted a thorough examination of geological data at the Polish Geological Institute in Warsaw during January 2024, identifying optimal blocks for application. By February, Prospex engaged a reputable local geo-technical firm to prepare detailed geological work programmes necessary for compliance with Polish mining regulations. These programmes included comprehensive maps, cross-sections, and graphics that meet regulatory standards.
In addition to strategic planning, Prospex has invested in local expertise by hiring a Country Manager in Poland and incorporating a consultant Reservoir Geologist into the technical team. This move underscores the company’s commitment to effectively managing its operations and optimally navigating the Polish regulatory landscape.
Prospex aims to submit its licence applications with a 100% working interest in the identified blocks. If successful, the company plans to establish joint ventures to manage and operate the hydrocarbon fields, in line with its strategy for sustainable and profitable exploration.
