Prospex Energy (PXEN) reported a stronger cash position in the first quarter of 2026, supported by higher gas revenues from its Italian assets and a successful oversubscribed financing, as the company continues to position its portfolio for further growth.
The AIM-listed energy investor generated £912,000 in gas sales revenue from the Selva Malvezzi project in Italy during the quarter, up from £769,000 in the previous quarter. While higher European gas prices in March are expected to further support earnings, those proceeds are set to be reflected in second quarter receipts.
Prospex ended the quarter with £907,000 in cash, compared with just £42,000 at the end of Q4 2025, following the completion of its £2 million Convertible Loan Note fundraise, which exceeded its original target by 25%. The financing is expected to support near-term development activity across the portfolio.
Operationally, the quarter saw production restart at the El Romeral gas power plant in Spain following the installation of a rental transformer, while Prospex also expanded its footprint in Poland through the award of the San and Dunajec onshore licences.
Prospex’s CEO Tom Reynolds said: "I am pleased to provide shareholders with an overview of Q1 2026 activities, including unaudited group cash-flow for the period, as part of the Company's ongoing commitment to transparency. Q1 2026 was a period of transition for the Company following my appointment as CEO, providing an opportunity to reassess priorities and re-evaluate our investment portfolio to ensure the Group is positioned for long-term growth."
"As we enter the second quarter of 2026, the Company has cash on hand to fund its new licences in Poland and to progress early assessment of prospectivity on that acreage. Strong revenues from gas sales in Italy, driven by elevated European gas prices, are expected to add to that cash balance."
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Prospex has materially improved its short-term financial position after a tight end to 2025. With cash replenished, producing assets generating revenue, and new exploration ground in Poland, management now has greater flexibility to focus on execution ahead of a more capital-intensive 2027.