GCIProspex Energy clears path for Polish gas exploration, expanding footprint to third European market
() , an investor in European gas and power projects, said it has begun the application process for onshore hydrocarbon exploration licenses in Poland.
said it identified prospective blocks in Poland with proven gas production, high potential prospectivity in the targeted horizons, high potential for new reserves, that can be brought onstream within 2-3 years.
In March 2024, Prospex incorporated a wholly-owned Polish subsidiary PXEN Tatra, then in May 2024 it filed applications with Polish regulators, and on October 3, 2024 it secured qualification to apply for licences in Poland.
will release further details on the new licence areas when the official applications are publicly gazetted following submission to the Ministry of Climate and Environment, expected before end of October 2024. The applications will be submitted initially based on a 100% working interest. If successful, expects the licences to be granted by Q1 2025.
View from Vox
A major announcement from Prospex as the energy company prepares to expand into its third European onshore gas market after Italy and Spain. The choice of Poland is logical given the country's vast natural gas reserves and favourable regulatory regime, known for quickly approving permits for hydrocarbon exploration and production. Like Italy, where is also active, Poland's government has been encouraging of natural gas exploration lately as a means of bolstering its energy security.
Moreover, already has exploration experience in Poland and is familiar with the regional geology and regulatory environment, making the country a natural choice for a third market to enter. Prior to applying for licences, had already met all local regulatory commitments, putting it on good footing to leverage its existing experience and relationships in Poland.
has already identified and applied for specific onshore areas that meet its exploration criteria, and investors should expect licences to be granted early in 2025. The Polish licences should add significant geographic reach to 's existing natural gas portfolio in southern Europe in a cost-effective manner, and should be financed entirely from existing production income.
Given all active development across Prospex's Italian and Spanish onshore gas investments, we see significant near-term upside within its existing concessions, that will be further boosted by Polish production in 2-3 years. remains cash generative, with no debt, and well-positioned for further growth.
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