LONDON (ShareCast) - (Sharecast News) - Prospex Energy said on Wednesday that its plans to expand into Poland had advanced after its applications for two onshore gas exploration licences were published in the EU's official journal, marking a key milestone in the company's European growth strategy.
The AIM-traded energy investor said the applications, made through its wholly owned subsidiary PXEN Tatra, covered two licence areas in southern Poland named San and Dunajec.

It said the projects met its investment criteria, offering proven gas production, strong geological prospectivity, and the potential to bring new reserves onstream within two to three years.

Under EU law, licence applications for open hydrocarbon areas must go through a competitive process.

The publication of the applications on 14 October triggered a 90-day window for other pre-qualified companies to submit competing bids to Poland's Ministry of Climate and Environment.

Prospex said the selection process was fully confidential, with awards determined solely by the regulator based on predefined criteria.

If successful, Prospex said it expected the licences to be awarded in April or May, following the conclusion of the administrative process.

Details of the proposed work programmes and licence areas would remain confidential until the awards were made.

"Our planned expansion into Poland marks an important step in our active growth strategy and would add a third European nation to our portfolio reach," said chief executive Mark Routh.

"The publication of our Polish licence applications in the EU Gazette is a positive step forward.

"Our team has extensive exploration experience in Poland and so is very familiar with the regional geology and the regulatory environment.

"Poland is well known for its hydrocarbon resources and has a regulatory regime which is supportive of natural gas investment as the nation focusses on its security of energy supply, so we are extremely excited by the development opportunities these new licences would present should they be awarded to Prospex."

Prospex said PXEN Tatra currently holds a 100% working interest in the applications and intended to form joint ventures to operate the blocks if the licences are secured.

The company said it had proposed a detailed work programme and appointed both a country manager and a consultant reservoir geologist in Poland to oversee the process.

At 1311 BST, shares in Prospex Energy were up 1.12% at 4.5p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE