Prospex Energy (PXEN) has reported a productive second quarter, supported by stronger European gas prices, rising electricity generation in Spain and continued progress across its portfolio of gas and power assets in Italy, Spain and Poland. The company also generated more than £1.2 million in gas sales revenue from its Selva Malvezzi asset in Italy.
At Selva Malvezzi, Prospex generated £1.203 million of gas sales revenue as realised gas prices averaged €0.48 per standard cubic metre, reflecting stronger European gas markets. The company also reached a key permitting milestone after submitting the Environmental Impact Assessment for its proposed four-well development programme. Meanwhile, processing of recently acquired 3D seismic data continued to support future drilling and field development.
In Spain, electricity generation at El Romeral increased significantly following production testing that extended operating time from four hours per day to around 15 hours per day by late June and July. Combined with higher electricity prices, monthly revenue at Tarba rose from about €20,000 in April to about €73,000 in June, reducing the asset's funding requirements. Installation of a new transformer is scheduled for September, which is expected to lower operating costs further.
The company also strengthened its position in Poland after being awarded the San and Dunajec licences. Historical data analysis increased Prospex's estimate of recoverable oil at the Mniszów discovery to 3.7 million barrels, supporting its strategy to attract funding partners for future development.
At the Viura gas field in Spain, operator HEYCO Energy Iberia advanced reservoir modelling and evaluated several development scenarios for further drilling in 2027, while production plans continue to focus on maximising cash generation during a period of favourable gas prices.
The group ended the quarter with cash of £852,000, compared with £907,000 at the end of the first quarter, after paying licence fees for newly awarded Polish assets and settling royalty and tax obligations related to Selva's 2025 production. During the quarter, the company also completed its 2025 audit, refreshed its board with the appointment of Simon Ashby-Rudd as a non-executive director, and continued reviewing new investment opportunities with near-term cash-generative potential.
Prospex chief executive Tom Reynolds said: "The AGM provided an opportunity to demonstrate the full potential of the Prospex portfolio, which I believe will strengthen our ongoing discussions with prospective funding and strategic partners. To support this process, and as indicated at the AGM, we will run a series of asset-focused online presentations beginning in September providing a detailed review of each asset."
View from Vox
Prospex continues to make steady operational progress while benefiting from supportive European energy markets. Stronger cash generation from Selva, improving economics at El Romeral and new opportunities in Poland leave the company with several potential catalysts as it seeks to advance development projects and attract strategic partners.