Oil and gas company Prospex Energy (LON: PXEN) released further good news from its interests in Spain. The Vlura 1B development well has tested at flow rates of up to 17.7mmcf/day gross.
AIM-quoted Prospex Energy has a 7.2365% working interest in the Vlura field, onshore Spain, which was acquired earlier this year. The Vlura 1B well is going into production and will add to the production coming from the Vlura 1 ST3 well. The stabilised plateau rate of 10.6mmcf/day is equivalent to 1.5mmcf/day for Prospex Energy, because it has advanced cost recovery terms. That is higher than the other well. Gas prices have been rising.
Two further development wells are planned, and one already has the drilling permit. The additional cash that will be generated will fund further wells in Spain and Italy over the next two years.
Prospex Energy has three cash generating assets with additional wells for potential additional production. Group production will be equivalent to 2.9mmcf/day, double the previous level.
Higher production and gas prices mean that Prospex Energy has a positive outlook. There is also a potential project in Poland. The share price is 0.45p ahead at 7.3p, which is a 47% increase since the start of the year. The funding for the acquisition of the Vlura interest was at 6p/share.