Prospex Energy (PXEN) has published a letter to shareholders from newly appointed Chief Executive Officer Tom Reynolds outlining the company’s strategy, asset portfolio outlook and growth plans across its European gas investments.
Reynolds, who has been in the role for one month, said he has spent the period visiting operations in Spain and Italy and engaging with partners and stakeholders to review the company’s producing and exploration assets.
Prospex is an AIM-quoted investment company focused on European gas and power projects. Reynolds said the company’s investment thesis centres on three themes: exposure to real assets producing essential commodities, opportunities to add value through discovery and development, and the strategic importance of domestic European energy resources.
Reynolds confirmed that the company’s Convertible Loan Note fundraising, launched in December 2025 with a £1.6 million target, has received subscriptions totalling £1.346 million so far. Prospex remains open to further subscriptions to reach the original target, although any investments made from 12 March 2026 will only be convertible after the first anniversary of subscription.
Prospex currently holds three producing assets - the Selva Malvezzi gas field in northern Italy, the Viura gas field in northern Spain, and the El Romeral power project in southern Spain.
At Viura, operator HEYCO Energy Iberia is conducting production trials to build a dynamic reservoir model that will inform future drilling decisions. Meanwhile, partner Po Valley Energy is advancing work at Selva Malvezzi aimed at assessing exploration upside and preparing an updated Competent Persons Report in the second half of 2026.
At El Romeral, production resumed in early February after the installation of a rental transformer. The project is now running production trials aimed at optimising generation, while permits are being sought for a planned five-well drilling programme. Early expressions of interest from potential farm-in partners have also been received.
Beyond producing assets, Prospex has exploration exposure in southern Spain through its interest in Tarba Energia, which holds the Tesorillo and Ruedalabola permits. However, both licences remain suspended pending regulatory approval for further work.
In addition, the company is seeking new onshore exploration licences in southern Poland, covering the San and Dunajec areas. If awarded, the licences would mark Prospex’s entry into a third European jurisdiction.
Reynolds also highlighted the changing European gas market since the Ukraine conflict, noting that the shift from Russian pipeline supply to Liquefied Natural Gas imports has increased price volatility and reinforced the strategic value of domestic gas resources.
Prospex said higher gas prices are expected to support stronger near-term cash flow from its producing assets, while also improving the economics of exploration and development opportunities across its portfolio.
Prospex Energy’s CEO Tom Reynolds said: “It has now been a month since I took over as CEO of Prospex Energy, and I would like to start by saying how excited I am for the future of our Company.”
“Having conducted a thorough assessment of our portfolio since joining I firmly believe that we are ideally positioned for growth at a period of surging market demand. Our gas reserves are significant, especially given the size of our company, we have a stable production base, and are actively growing, with a well-defined and robust pipeline that includes several new wells and European expansion.”
View from Vox
Prospex’s new CEO is setting out a clear strategy centred on European domestic gas assets at a time when energy security remains a major regional issue. With producing fields already generating revenue and additional exploration opportunities under review, the company appears focused on growing value through operational improvements, farm-in partnerships and selective expansion into new markets such as Poland.