Spanish Government Grants 10 -year Licence Extension on El Romeral Production Concessions
Prospex Energy PLC announced that the Spanish regulatory authority has granted a ten-year extension, to July 2034, to the natural gas production concessions owned by Tarba Energía S.L. (“Tarba”) known as El Romeral 1, 2 & 3 from which Tarba generates electricity from its own natural gas production.
The Royal Decree was signed on 24 July 2024 allowing the Ministry for Ecological Transition and the Demographic Challenge (MITECO) to grant the extension of the natural gas exploitation concessions “El Romeral 1, 2 and 3” for ten years, the maximum allowable term, thus guaranteeing electricity supply to the grid until at least July 2034, when the concessions may be extended for a further ten-year period, reaching 2044.
Tarba’s electricity production plant in Carmona near Seville was declared a Public Utility by the Andalusian Regional Government at the beginning of 2023 and is the only facility in Spain that converts electricity from natural gas at the same location as the gas is extracted from the subsurface.
Applications to permit the five well drilling campaign on the concessions is already with MITECO for permitting approval.
The El Romeral power plant is operated by Tarba, which is based near Carmona east of Seville in the province of Andalucía, Spain. The El Romeral asset is co-owned through Tarba by Prospex which has a 49.9% working interest and Warrego Energy Limited which has a 50.1% working interest. Warrego Energy is now wholly owned by Hancock Energy (PB) Pty Ltd in Perth Western Australia.
Tarba is pioneering a new hybridisation model that combines natural gas and solar energy as sources for electricity generation in the ecological transition process by developing a project to produce 5MW electricity using photovoltaic solar energy (“Project Helios”).
In 2023, Tarba supplied enough energy to cover the electricity consumption of approximately 6,700 homes in the area, even when operating the facility at one third of its capacity. With future wells to be drilled on the concessions, the plant is expected to reach its maximum nameplate production capacity to sell 8.1MW of power into the grid. The combination of further natural gas extracted from the concessions and the new photovoltaic generation is expected to cover the energy supply of 20,100 homes.
Mark Routh, Prospex’s CEO, commented:
“The official extension of the El Romeral production concessions for the maximum allowable term of ten years, is a very welcome step by the Spanish regulatory authorities. It is also an important official acknowledgement by the Spanish state of the crucial role natural gas will continue to play in the nation’s energy security and the ecological transition process.
“It is important to highlight that the El Romeral power plant will reach full output capacity from production of just two of the proposed five wells. Any extra gas from the remaining new wells or any future wells drilled on the concessions will facilitate expansion plans at the power plant as well as the ability to supply natural gas directly to the grid or to the local market in Andalucía.”
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
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