Prospex Energy, an AIM quoted investment company, has announced its audited Final Results for the year ended 31 December 2024 and Notice of the Annual General Meeting ('AGM') on 25 June 2025.
Corporate Highlights
- At the end of 2024, the financial position of the Company had significantly strengthened with three revenue generating onshore natural gas investments situated in stable European countries - two in Spain and one in Italy.
- A fundraise in August 2024 of £4.2m gross via the issue of 69,955,393 new shares at 6p each, was applied in the same month to acquire 7.5% of HEYCO Energy Iberia S.L. ("HEI"). HEI has majority ownership in the producing Viura gas field in northern Spain, now the Company's third producing asset. 14.473% of the net after-tax production income from the Viura gas field accrues to the Company's investment until completion of the drilling programme and payback of its initial capital investment plus a 10% preferred return, after which its share reverts to 7.2365%.
- The results from the Viura-1B well, announced in December 2024, confirmed this investment decision. As this asset was acquired during the year, the fair value attributed to it is the actual amount invested at year-end, and it has not been revalued.
- During the year the Company expanded its activities into Poland, and created PXEN Tatra Sp. Z. o. o., a wholly owned subsidiary of Prospex, following its qualification to apply for onshore acreage hydrocarbon exploration licences in country.
- Exemplary safety performance by our operators, contractors and partners with no lost time incidents and no environmental issues or events.
Financial Highlights
- The Company recorded a loss for the year of £46,759 (2023: loss - £1,231,400), a 96% reduction on last year.
- The Company is reporting a 19.5% increase in shareholder equity (net asset value) at year-end of £4,013,106, to £24,590,154 (2023: £20,577,048).
- The revaluation of investments at fair value resulted in an increase of 4.59% to £16,310,197 (2023: £15,594,931) and an unrealised gain of £713,583 (2023: unrealised loss - £469,709).
- In March 2024, the Company made final settlement of all remaining interest-bearing debt and interest. No further debt finance was required or raised during the year.
- Consistent with the Company's strategy, cash inflows from the Company's investment portfolio (which are received as loan repayments until repayment of capital and interest) were reinvested for growth, with further investment in all of the Company's assets during the year.
- At year-end, the Company held cash and cash equivalents of £1,185,386 (2023: £3,186).
Post period highlights
- On 15th April 2025, the Company's wholly subsidiary, PXOG Muirhill Limited, completed the acquisition of 100% of Tarba Energía S.L. ("Tarba") through the purchase of the entire shareholding held by Warrego Energy Pty Ltd ("Warrego") in Tarba (the "Warrego Shares"). The Company now owns a 100% indirect working interest in El Romeral asset and the Tesorillo and Ruedalabola exploration permits.
- The Company has invested a further £903,000 in the Viura asset during 2025.
- Both of the above were completed using the Company's existing capital resources.
- The Company appointed Hannam & Partners ('H&P') as Joint Broker.
- The management team has been strengthened with the appointment of Richard Jameson, as Chief Operating Officer.
Operational Highlights
Viura Field - Northern Spain
- The Viura acquisition significantly increased Prospex's proven (2P) reserves by 6.5 Bcf (0.18 Bcm) net to Prospex. Gross 2P remaining reserves at the Viura field is 90 Bcf (2.5 Bcm) and is expected to increase upon further evaluation of the newly drilled horizons.
- Successful drilling and discovery of the Viura-1B well which reached its revised total depth in October 2024, encountering high-quality gas-bearing formations, including a new discovery in the previously unexplored Utrillas-B reservoir. Further testing is planned for 2026.
- Viura-1B was completed and tested with flow rates up to 500,000 scm/d (17.7 MMscfd), initiating production at 300,000 scm/d (10.6 MMscfd), significantly boosting Prospex's total gas output in December 2024.
- Total natural gas produced from the Viura-1B well from start-up in December 2024 to the end of Q1-2025 was 30.2 MMscm = 1.1 Bcf (which is ≈ 4.4 MMscm = 154 MMscf net to Prospex).
- Post Period the Company announced the temporary cessation of production of the new Viura-1B well due to a leak in the completion tubing. The Operator is sourcing the necessary equipment including mobilising a suitable drilling rig in order to perform the workover by mid-June 2025.
- Drilling Phase 2 wells Viura-3A and Viura-3B is now anticipated in 2026.
El Romeral - Southern Spain
- Ten year extension of the natural gas exploitation concessions at "El Romeral 1, 2 and 3" to July 2034.
- Significant progress was made by the operator on the permitting process of the five new wells to be drilled on the concessions and the Environmental Impact Assessment. It is anticipated that the drilling permits may be issued in 2025.
- Potential connection and gas sales to Enagas Gas Grid, subject to the issue of the permits to drill the five new El Romeral gas wells.
Selva Field - Northern Italy
- Strong production and revenues with gross gas production for 2024 totalling 27.5 million scm, with 10.2 million scm net to Prospex. Gross revenue reached €10.3 million, with €3.8 million net to Prospex at an average realised gas price of €0.37/scm.
- Average gross daily production increased steadily each quarter, ending the year at nearly 80,000 scm/day. Quarterly net revenues to Prospex rose from €705,000 in Q1 to €1.25 million in Q4.
- Extension of long-term gas sales contract with BP Gas Marketing ("BPGM"), originally effective from April 2024, was extended by 12 months in October. A further renewal is anticipated by October 2025.
- Drilling applications for four new wells in the Selva Malvezzi production concession were filed in Q3-2024 with the technical office of the Ministry of Environment and Energy Security.
- Lifting of the inherent hydrocarbon exploration and extraction restrictions on the Plan for the Sustainable Energy Transition of Eligible Areas ("PiTESAI") has led to increased access for activities on the Selva Malvezzi Concession.
- Approval for strategic 3D Seismic Campaign was obtained in January 2025, paving the way for four new planned wells.
Commenting on the results, Mark Routh, Prospex's CEO, said:
'2024 was a year in which we made significant progress towards the development of our stated strategy - to become a mid-tier independent European energy producing group. We are pleased to report a significant increase in net asset value by more than £4 million, underpinned by our growing portfolio of high-quality energy investments. Ending the year debt-free, with more than £1.1 million in cash and financially self-sustaining on a business-as-usual basis, marks a key milestone for the business, enabling us to reinvest organically and strengthen our foundation for future growth from a far stronger balance sheet.
'The subsequent successful acquisition of Tarba Energía, and the increase of investment in the Viura asset, both completed with existing cash reserves, highlight our disciplined approach to portfolio development, supported by the continued confidence of our investors. Looking ahead, we remain focused on both organic growth from our existing assets and the pursuit of new opportunities that meet our rigorous investment standards and look forward to a successful 2025.'
Source: Prospex Energy
