Prospex Oil and Gas welcomes Grand Gulf Energy to Kolo License

13th Dec 2016 09:28

(ShareCast News) - Prospex Oil and Gas, an AIM quoted investment company, has announced that Hutton Energy its co-investor in Hutton Poland, which owns the Kolo License, has sold 40% of its interest to Grand Gulf Energy.After the transaction Prospex owns 49%, Hutton Energy 30.6% and Grand Gulf Energy 20.4%.The consideration for the sale is AUD600,000 which includes Grand Gulf Energy's share of the costs of the Boleslaw-1 well.Initial drilling commenced at the Boleslaw-1 well on the Kolo license, onshore Poland, on 10 December 2016. The well is targeting gas in an active petroleum system.Prospex non-executive Chairman Bill Smith, said "We welcome Grand Gulf Energy to the Hutton Poland partnership. With the spudding of the Boleslaw-1 well, which is targeting an independently assessed 87bscf gas prospect, this is an exciting time for all stakeholders in Kolo."Hutton Poland has planned the well for success and pre-ordered a number of items that would enable the well to go onto a long term test if the drilling results are in line with the pre-drill prognosis. We look forward to providing further updates on the well's progress as and when it is appropriate to do so."The share price fell 4.6% to 2.08p at 1036 GMT on Tuesday.