Prospex Energy, the AIM quoted investment company, has announced its unaudited Interim Results for the six months ended 30 June 2026.
Corporate and Operational Overview:
The period under review has been one of significant operational and strategic progress. Prospex has continued to strengthen its producing asset base, increase cash flow, advance its development pipeline and expand its European portfolio.
In March the Company completed the Convertible Loan Note (“CLN”) issuance which was launched in late 2025. In total, the Company raised c. £2 million, well above the original £1.6 million target.
On 1 February, Tom Reynolds was appointed Chief Executive Officer, replacing Mark Routh who left the Company at the end of April. In May, Simon Ashby-Rudd was appointed as Non-Executive Director.
Management commenced a programme of increased communications with stakeholders, and a series of meetings with local regulators, partners and potential investors.
A detailed review of the Company’s asset portfolio and corporate strategy was launched by the new CEO and the initial results presented at the Company’s AGM in June. As a result, each asset has a clear value development pathway which is being implemented by the management team.
The Company and its investments had no reportable Health and Safety incidents or environmental issues across any of its operations in the reporting period.
Selva Malvezzi, Po Valley, Italy
Stable natural gas production from the Podere Maiar-1 well (PM-1) continued, with gross production of 14.28 MMscm (5.28 MMscm net to Prospex 37% interest) which was sold at an average realised price of €0.46/scm, generating €2.41 million revenue net to Prospex’s investments. Development costs of £300k primarily related to the acquisition cost of new 3D seismic data. This data is being processed by Schlumberger Italy to create a high-resolution subsurface model supporting future development plans, which, as at the date of this report, is nearing completion.
In June, the licence Operator Po Valley Energy filed an Environmental Impact Assessment ("EIA") with Italy's Ministry of Environment and Energy Security ("MASE"). The EIA covers the project to drill, develop and commission four new wells within the Selva Malvezzi Production Concession in the Po Valley Basin in Northern Italy. The four proposed wells are relatively close to the existing Podere Maiar-1 well and offer the prospect to deliver significant additional production and increase reserves on the concession.
Post-period end the EIA was declared admissible by Italy’s Ministry of Environment and Energy Security (“MASE”), triggering a 60-day public observation period.
A new 12-month agreement was also signed post-period end with Hera Trading S.r.l. (“Hera”) to supply gas from the Selva Malvezzi production concession, starting 1 October 2026, supporting ongoing gas sales from the field, which due to high gas prices delivered record gas sales revenue in August.
El Romeral, Tarba Energia, Andalucia, Spain
The El Romeral gas and power plant resumed electricity generation and sales in January following the installation of a rental transformer while a new permanent transformer was manufactured. Good well management has extended generation activity from around four hours per day up to 16 hours per day since installation. Higher production, combined with a backdrop of favourable electricity prices, has delivered consistently increasing revenue over the reporting period.
Post-period end, a new transformer was successfully installed providing a permanent solution and reducing operating costs following the return of the rental unit. Consistent production and high wholesale electricity prices have enabled Tarba to operate without funding from Prospex to support operations since July.
The Company has agreed a strategic collaboration with IMMAGE (Investigating Miocene Mediterranean-Atlantic Gateway Exchange) Land-2-Sea drilling project at El Romeral. IMMAGE will contribute up to US$1.5 million towards coring and logging operations in a subset of the planned wells, meaning Prospex will gain access to geological data and international research visibility at no additional cost.
PXEN Tatra Sp. z o.o., Poland
The Company’s wholly owned subsidiary, PXEN Tatra Sp. z o.o. was awarded the San and Dunajec licences.
The San licence holds attractive exploration potential in the shallow Miocene gas play.
The Dunajec licence includes Jurassic age prospectivity as well as the Miocene shallow gas play and contains an undeveloped oil discovery - Mniszow.
The company has collated and processed a significant volume of historical licence data focusing on Mniszow, and is progressing options to develop the field as an oil producer.
Post-period end, a detailed presentation on the Mniszow development, which provided a base case development plan as well as economics, was released in September 2026 and can be viewed and listened to via the company’s website.
Financial Overview
- The Company reports a profit of £131,941 (H1 2025: loss of £180,101) after taxation from continuing operations for the six-months ended 30 June 2026.
- Administrative expenses in the reporting period increased by £250,352 to £881,156 compared to the same period in the previous year (H1 2025: £630,804). Of the increase, £195,686 is of a non-recurring nature, attributable to management change transitional costs (£89,052), debt-raise costs (£69,155), foreign exchange losses and timing differences (together £37,479). The management change and debt raise were both completed in the current reporting period.
- The reported profit includes a £628,789 unrealised gain (H1 2025: unrealised loss: £32,715) on financial assets at fair value.
- Underlying assets held by all the Company’s investment vehicles were revalued on a basis consistent with prior reporting dates. Forward prices for European natural gas and exchange rates as at 30 June 2026 were taken into account, as well as the reduction of reserves produced during the 6-months.
- The Company’s Net Asset value (Shareholder Equity) increased by £363,519 in the six-months ended 30 June 2026, from £22,939,921 at 31 December 2025 to £23,303,440 at the reporting date.
- The Company received £1.37m during the reporting period (H1 2025: £nil) from the completion of the Convertible Loan Note issuance, which commenced in December 2025.
- At 30 June 2026, the Company held cash and cash equivalents of £524,643 (Year-end 2025: £38,935). Additional cash and cash equivalents held in the Company’s wholly owned non-consolidated investment companies amounted to £327,368 (Year-end 2025: £3,065).
- Trade and other receivables increased by £576,332 to £11,277,601 (31 December 2025: £10,701,269). The increase includes additional loans to the Company’s investment companies and interest accrued, net of debt repayments.
- The Company and its investment vehicles are expected to have sufficient funds to continue in operation and meet future operating and known capital costs.
Tom Reynolds, CEO of Prospex Energy, commented:
'The first half of 2026 has been a pivotal period for Prospex, with our producing assets generating increasing cash flow while we have continued to advance our development and exploration portfolio. Since period end, this progress has accelerated – with record monthly revenues, Tarba achieving cash self-sufficiency, and Selva’s EIA progress.
'Our focus for the remainder of the year is to build on the success of the first half by maximising the net cash flow from our producing assets whilst advancing development plans with our partners on each asset. A primary objective is to engage with partnership investment to support this activity. I am particularly excited about our Polish licences, which provide investors with blue sky potential in a supportive-oil and gas jurisdiction, and I look forward to updating shareholders on our progress.'
Source; Prospex Energy
