Prospex Energy (PXEN) reported higher revenues and operational progress across its European energy portfolio during Q3 2026, supported by stronger European energy prices and continued development activity across its assets in Italy, Spain and Poland.
The natural gas and power investment company recorded combined operating revenue of £1.701 million from Selva Malvezzi and Tarba Energía, up 41% from £1.203 million in Q2.
At the Selva Malvezzi concession in Italy, stronger gas prices supported quarterly revenue, with the average realised price rising to €0.69 per standard cubic metre from €0.48 in Q2. Revenue attributable to Prospex's 37% interest increased to €1.689 million from €1.255 million.
Meanwhile, the Podere Maiar-1 (PM-1) well is producing ~60,000 standard cubic metres per day following a managed reduction in flow rates to address increased water production and safeguard long-term gas recovery. A modest production increase may be considered following further analysis.
Schlumberger Italy has also delivered preliminary processed data from the completed 3D seismic survey, which will help identify drilling locations for the planned 2027 campaign. Additionally, the Environmental Impact Assessment for the proposed four-well drilling programme has been declared admissible, with a 60-day public consultation underway. A new 12-month gas sales agreement with Hera Trading took effect on 1 October.
In Spain, the El Romeral project benefited from stable electricity generation and stronger prices, with Tarba achieving cash self-sufficiency during August and September. The installation of a new transformer is also expected to reduce monthly operating costs by ~€14,000.
At Viura, initial results from water re-injection testing commenced in October have been encouraging, potentially supporting improved reserves recovery and cash generation.
In Poland, Prospex advanced its development strategy for the Mniszow oil discovery, focusing on lateral drilling techniques to unlock commercial production.
Prospex Energy's CEO Tom Reynolds said: “I am pleased to provide shareholders with an overview of Q3 2026 activities, including unaudited Group cash-flow figures for the period. During the quarter, we focused on operational delivery at El Romeral, resulting in a cash surplus and advanced detailed development plans at Mniszow in Poland.
“At Selva Malvezzi, PM-1 delivered record production and revenues during the quarter. The new seismic data is feeding into the 2027 drilling and activity plan, which aims to establish additional productive wells within the concession. In the meantime, the PM1 well will be carefully managed to optimise its continuing contribution.
“Ending the quarter with a strong cash balance of over £1.5 million provides the Prospex with sufficient cash to progress assets in the near term. Consistent with previous guidance, I expect medium-term capital needs to be met by introducing partnership capital at the asset level where the Company has engaged with a number of interested counterparties. This will allow us to add value to our assets through discovery, de-risking and development, maximising value for existing shareholders.”
View from Vox
Prospex's Q3 performance highlights the benefit of stronger European energy prices alongside operational improvements across its portfolio. Progress on Selva's 2027 drilling programme, improved economics at El Romeral and development planning in Poland provide several opportunities to advance its European energy assets.