Searching for high impact energy projects
Following the disappointing result at the Sasanof Well, Prominence Energy (ASX:PRM) continues its search for high impact opportunities in the oil and gas, hydrogen and helium sectors.
PRM today confirmed that it was “adequately funded in the near term to fund the selection and evaluation of prospective projects” with $2.8M cash as at June 30. With a market cap of $4.8M, the company is currently trading with an enterprise value of just $2M.
The company reported that it is reviewing a steady stream of new venture opportunities, as it tries to find and secure the right project for the company.
PRM is seeking projects:
- With a high probability of success, focused on appraisal and development projects as opposed to high-risk, high-reward exploration.
- Early entry opportunity such as acreage applications where drilling can be substantially funded via farm-out.
- Opportunities in Helium, Hydrogen or other green energy projects.
- Near term cash flow generation projects.
As part of its strategy to invest in alternative energy and carbon friendly projects, PRM has acquired a 10.9% ($100,000) stake in Ecostorage Solutions Pty Ltd (ECOSSAUS) in a seed capital raising.
ECOSSAUS has seven tenement applications across 3,322km2 in Northern Territory, South Australia and Queensland believed to be prospective for the solution mining of salt and the potential subsequent use of resultant salt caverns for storage purposes.
PRM is also continuing to work on the Bowsprit project which it believes could provide a free cash flow generating avenue for PRM given the current energy climate.
While we were disappointed, but not shocked at the results of the high-risk, high-reward Sasanof Well, we are encouraged that the company is progressing in its search for new opportunities.
