Prospex resumes generation, sales at El Romeral

(Sharecast News) - Prospex Energy said on Monday that electricity generation and sales had resumed at the El Romeral gas-to-power plant in Andalucía, Spain, following installation of a rental transformer, restoring revenue from the asset. The AIM-traded investor in European gas and power projects, which holds a 100% interest in Tarba Energía, confirmed that regular production has restarted after a series of testing and recommissioning steps were completed in late January.

It said the rental transformer would remain in place until delivery of a new transformer ordered last November from a Spanish supplier.

Tarba said it was in dialogue with the supplier and that progress is being made on the new build.

"The restart of production at Romeral is a welcome result which now allows Tarba to continue to generate revenue from electricity sales," said chief executive Tom Reynolds.

"Tarba will continue to optimise production, taking account of prevailing conditions in the Spanish electricity market to maximise revenue."

Reynolds, who joined the company on 1 February, added that since joining the company, he had focussed on meeting the team, the company's partners and prospective partners, with the objective of understanding how value could be developed from Prospex's assets.

"A key catalyst for Romeral is the ongoing permitting process for the planned well programme and meeting the relevant teams within the regulators is a priority.

"I look forward to keeping shareholders up to date on the permitting process and our broader strategy in due course."

At 1148 GMT, shares in Prospex Energy were up 7.42% at 3.17p.

Reporting by Josh White for Sharecast.com.