Prospex Energy announces Final Results for Y/E 31 December 2025

Prospex Energy, an AIM quoted investment company, has announced its audited Final Results for the year ended 31 December 2025.

Corporate Highlights

• Acquired 100% ownership of Tarba Energía S.L., including the El Romeral gas-to-power project and Tesorillo permit
• Selva Malvezzi signs new 12- month gas sales agreement with Hera Group S.r.l.
• Successfully completed a c. £1.2 million placing and subscription to support operational and development activities
• Invested c. £3.8 million into our assets in the first three quarters of 2025, with c. £2.6 million (70%) funded from internal resources
• Appointment of Hannam & Partners ('H&P') as Joint Broker
• Appointment of Richard Jameson, as Chief Operating Officer

Post-period Corporate Highlights

• The Company strengthened the board with the appointment of Tom Reynolds as Chief Executive Officer and Simon Ashby-Rudd as Non-Executive Director
• The board undertook a strategic review of the Company's asset portfolio and corporate objectives to refocus on shareholder value creation
• Total of £2 million raised via Convertible Loan Note ("CLN"), 25% above the original £1.6 million target. Funds used to support the Company's ongoing activities and anticipated 2026 cash call needs, ensuring the company retains its current ownership stake in all its investments.
• Enhanced shareholder communications and engagement activities to increase shareholder understanding and strengthen market confidence
• Advanced its strategy to expand into a third European country - Poland, with the award of the San and Dunajec exploration licences

 Financial Highlights

• The Company recorded a loss for the year of £2,795,169 (2024: loss - £46,759). The current year's loss includes an unrealised loss on revaluation of investments of £2,541,311 (2024: unrealised gain £713,583) primarily related to depletion of reserves through production from the Selva Field in 2025 and lower gas prices used for valuation at 31 December 2025.
• The Company is reporting a decrease in shareholder equity (net asset value) at 31 December 2025 of £1,650,233, to £22,939,921 (2024: £24,590,154).
• Total Assets decreased by £1,248,677 to £24,509,190 (2024: £25,757,867).  The decrease is primarily attributable to a decline in the valuation of the Company's investment in PXOG Marshall Limited, the investment vehicle that directly and indirectly holds 37% of the Selva Malvezzi production concession in Italy, primarily related to depletion of reserves through production from the field and lower gas prices at year end.
• At 31 December 2025, the Company held cash and cash equivalents of £38,935 (2024: £1,185,386). Post period the Company extended the CLN offer raising an additional £653,950 which, together with higher than budgeted cashflow from gas sales, saw the company ending Q1 2026 with a cash balance of £907,000 (unaudited). This is expected to cover general working capital requirements as well as anticipated capex costs for the balance of 2026.

Operational Overview

Selva Field - Northern Italy

• Consistent gas production throughout 2025 from the Podere Maiar-1 well.
• The share of production for the year attributable to the Company's investment was 10.4 MMscm, and the share of gross revenue earned from gas sales was €4.1 million.
• Signed a new 12-month gas sales agreement with Hera Trading to supply approximately 27.96 MMscm at prices linked to the Italian Gas Index (IG Index GME), which typically trades at a premium to TTF.
• Secured INTESA approval and final MASE authorisation for a 3D seismic acquisition campaign
• In December 2025, the operator completed the acquisition of approximately 140 km² of 3D seismic data, on time and within budget.
• Continued technical and permitting work in support of the planned four-well development programme.

Post-Period Selva Field Highlights

• In Q1 2026, stable production continued with gross production of 7.26 MMscm (net to Prospex 2.69 MMscm), which was sold at an average realised price of €0.43/scm, generating €1.155 million net revenue.
• Gross cumulative production exceeded 72.9 MMscm, passing the milestone certified P1 reserve level.
• Progress made on Environmental Impact Assessment (EIA) updates and development planning for the Casale Guida-1d, Ronchi-1d, Bagnarola-1d, and Selva Malvezzi-1d wells, incorporating feedback from the Ministry.
• Data from the 3D geophysical survey is undergoing processing by Schlumberger Italy

Tarba Energía, El Romeral licences and Tesorillo/Ruedalabolia Permits  - Southern Spain

• In April 2025, the Company announced the acquisition of outstanding shares of Tarba Energía, resulting in full ownership of the El Romeral gas-to-power project and the suspended Tesorillo and Ruedalabola permits.
• Generated 3,752 MWh of electricity during H1 2025, delivering revenue of €365,152; however, the plant was offline from 1 July 2025 due to transformer availability issues. A new transformer was ordered in November 2025.
• Progressed permitting for five new development wells, with the EIA consultation process completed without objections from statutory consultees or the public.
• EIA statutory consultation for five new wells was publicly gazetted in February 2025 following the submission of the permit application in May 2024.

Post-Period Tarba Energia Highlights

• Production restart at El Romeral following the installation of a replacement rental transformer.
• Continued to engage with Spanish regulators regarding the delivery of permits to drill five wells at El Romeral and connect to the Spanish gas grid, supporting direct gas export.
• Engaged with potential third-party investors who have appetite and financial capability to support development of the El Romerol assets.

Viura Field - Northern Spain

• Gross production from start-up in December 2024 to end-Q1 2025 totalled 30.2 MMscm (1.1 Bcf) gross, or approximately 4.4 MMscm (154 MMscf) net to Prospex.
• Undertook a workover programme on the Viura-1B well following the detection of a tubing leak at the beginning of April 2025, which resulted in the well being shut down.
• Resolved wireline equipment issues encountered during testing operations in August 2025.
• The Viura-1B well was brought back online on 17 October 2025 with gas production increased in stages.
• Achieved average production rates of approximately 190,000 scm/d during November 2025.

Post-Period Viura Field Highlights

• During Q1 2026, operator HEI conducted a series of production trials to support the construction and calibration of a dynamic reservoir model, which will be used to inform future development drilling decisions.
• Average production rates during Q1 2026 were 107,800 scm/d gas and 163 scm/d water, although these are not indicative of steady state production.
• Modelling work is ongoing with a steady-state regime expected after the calibration trials
• 2026 focus is on the preparation of an independent reserves report with the potential to underpin a debt facility at HEI, minimising shareholder dilution and planning for future drilling and tie-in activities.

San and Dunajec Licences - Poland

• Applied for two exploration licences in the Carpathian Foreland Basin.
• San and Dunajec licences awarded post year-end with Prospex holding 100% ownership.
• Expanded the Company's European portfolio into a new operating jurisdiction with established oil and gas infrastructure.
• Began compilation and review of historical geological and production data across both licence areas.
• Continued technical assessment of the Mniszów undeveloped oil discovery within the Dunajec licence area to understand potential for near term drilling and development.

 Commenting on the results, Tom Reynolds, Prospex's CEO, said:

'First of all I would like to thank Andrew Hay for his support since I joined Prospex and also for his service on the audit committee in preparing these accounts.

'Since my appointment in February, I have undertaken a comprehensive review of the Company's asset base and believe Prospex is well positioned with an enviable portfolio that combines existing cash flow, development upside and longer-term exploration potential. Selva Malvezzi continues to demonstrate its importance as the Company's foundation asset, delivering stable production and revenue while supporting the technical work required for the planned multi-well development programme. At the same time, El Romeral has returned to production, Viura offers significant potential to deliver future shareholder value through increased production and planned development activity, and our newly awarded licences in Poland provide additional longer-term upside exposure.

'I was also grateful to our shareholders for their continued support, which was evident during our extended CLN offering, which took place post period. Their support, and the additional circ. £654,000 raised, means that we are fully funded for our anticipated capex commitments this year.

'Meanwhile, European energy security and domestic supply remain high on the political agenda, and natural gas prices continue to reflect broader geopolitical pressures. We believe Prospex offers investors rare exposure to these macro tailwinds as well as attractive opportunities to add value at the asset level across its portfolio.'

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Source: Prospex Energy