Tarba Energia will acquire the 100% interest held by Petroleum Oil & Gas Espana (POGESA) in the El Romeral-1, El Romeral-2 and El Romeral-3 production concessions located to the east of Sevilla in the Guadalquivir Basin. The deal, which was signed in December 2019 with an economic date starting in July 2019, will be effective upon approval of the license transfer by the authorities. The deal involved an initial consideration of EUR 750,000 (USD 837,000) plus further deferred considerations of EUR 250,00 (USD 279,000) for each of the next three wells to be drilled in the concessions. Warrego Energy, which currently holds 85% of Tarba Energia, funded the initial consideration and Prospex Oil and Gas â the other shareholder in Tarba Energia â acquired 49.9% in the project by funding Warrego Energy accordingly (through the issue of a second class of Tarba shares).  The three blocks, covering a total area of 310 sq km, encompass five one-well Miocene gas fields out of which three - Ciervo 1, Santa Clara 1 and Sevilla 1- are currently in production and two - Rio Corbones 1 and Sevilla 3 - are shut-in with a low-cost workover potential. The gas is converted in electricity by an 8.1 MW power station owned the operator of the license. As per a 2019 independent reserves and resources assessment, the three producing fields hold remaining reserves of 0.3 Bcf. In addition to the five fields, the tracts cover two undeveloped discoveries with 2C contingent resources estimated at 5 Bcf and 13 nearfield prospects identified on 2D seismic and supported by AVO analysis with unrisked prospective resources (2U) estimated at 90 Bcf.  The El Romeral contracts were awarded to group led by Repsol on 28 July 1994. After numerous interest change, Petroleum Oil & Gas Espana became the sole rightholder of the tract in December 2017. The contracts are valid until 2024 and can be renewed twice for a ten-year term. The ultimate expiry date is 28 July 2044.  Subject to regulatory approval, Tarba Energia will hold a 100% interest in the El Romeral-1, El Romeral-2 and El Romeral-3 production concessions.
Tarba has agreed to acquire Petroleum Oil & Gas EspaÃ±a's 100% in the El Romeral-1, -2 & -3 prod. leases totalling 310 sq km in AndalucÃ­a.