Shares Prospex Oil & Gas fall after placing, Boleslaw update

Shares in Prospex Oil and Gas were down more than 27% as it raised about £1.64m in a placing at 1p a share, and at the same time updated on the unrisked prospective resources at the Boleslaw prospect.

Proceeds from the placing would go to supporting the 2016 activities of Hutton Poland Ltd, repaying the loan from Hutton Energy Ltd and for general working capital purposes.

The Boleslaw prospect is within the Kolo licence, which is part of a portfolio of investments held by Hutton Poland, in which Prospex holds a 49% investment stake.

Gross best-estimate technical un-risked prospective resources for the Boleslaw prospect are estimated at 87.1 Bscf, said Prospex, citing a competent persons' report prepared by AGR TRACS International Ltd.

"We believe it (the Boleslaw prospect) demonstrates the significant value in the Hutton Poland investment, £5m to £8.4m, compared to the investment cost of £620,000 and the potential for the project moving forward," said chairman Bill Smith.

"If successful, a well on the Boleslaw prospect could unlock significant value for the company."