Prospex Energy (PXEN) , an investor in European gas and power projects, issued an operational update on production, development and drilling schedules across its portfolio of 3 natural gas assets onshore Europe - Viura and El Romeral in Spain, and Selva in Italy. PXEN reported net production across the portfolio at 70,000 scm/d, representing a 187% increase since January 2024. Net revenues also increased in line with production, assisted by rising energy prices.
At the Viura field in northern Spain where Prospex has 7.24% interest, gross gas production averaged 217,000 scm/d in February-March 2025 (31,400 scm/d net to PXEN), despite the original producing well Viura-1 ST3 being offline. Two new development wells Viura-3A and Viura-3B are targeted to commence drilling in Q2 2025.
At Selva field in northern Italy where PXEN has 37% interest, gross gas production continued to average a steady ≈80,000 scm/d in February-March 2025 (30,000 scm/d net to PXEN) after the facility ramped up to nameplate capacity in 2024. The asset now provides a steady income stream for PXEN, with revenues up 91% between 4Q23 and 4Q24, supported by rising gas prices.
PXEN expects to acquire new 3D seismic data for Selva in Q3 2025. The acquisition should be completed within a 3-week period, with data processing and interpretation done immediately after. PXEN has lodged permit applications for 4 new wells on the concession, with drilling expected to commence in Q4 2025/Q1 2026.
At El Romeral in southern Spain where PXEN has 49.9% interest, gross gas production averaged 17,300 scm/d in February-March 2025 (8,700 scm/d net to PXEN). All the gas was converted to electricity and sold on the hourly spot market, generating an average of c. 1,700 MW throughout the quarter. PXEN is in the process of acquiring El Romeral operator Tarba Energia, which will double PXEN's net production from the asset.
PXEN also reported good progress on permitting for 5 new wells on the El Romeral concessions. The permits are expected no earlier than Q4 2025. Investors should note that only 2 of the 5 wells are needed for the El Romeral power plant to reach its full 8.2 MW capacity (currently at 30%).
View from Vox
Prospex continues to make steady progress across its European natural gas portfolio, with increasing production from existing assets and new development wells advancing through the permitting process. Despite a reduction in flow rates from Viura since an earlier peak of 323,000 scm/d, the overall portfolio has nearly tripled production year-on-year, driving a corresponding rise in net revenues.
The rapid growth in revenues has fueled PXEN's ambitious expansion strategy, which saw the acquisition of Viura last year, and more recently the purchase of El Romeral operator Tarba Energia - both significantly boosting total production. Looking ahead, investors can expect 11 new wells across the 3 concessions to come online within the next 24 months, pending permits.
Given all aforementioned active development across Prospex's European onshore gas investments, we see significant near-term upside within the existing concessions, with contingent and prospective resources being converted into developed producing reserves. PXEN should be able to fund the development of the new wells from existing production revenues, although fundraising is not being ruled out.
PXEN remains cash generative, with no debt, and well-positioned for further growth.
In an interview with Vox Markets, Prospex Energy CEO Mark Routh discussed the company's recent operational developments.