Prospex Energy, the AIM-quoted investment company focused on European gas and power projects, provides an operational update which demonstrates strong progress being made across all of the Company's operations in line with management expectations supported by a highly favourable macro-economic background for energy pricing in Europe.
Highlights
- Selva Malvezzi
- Italy's Ministry of Environment and Energy Security ("MASE") has confirmed admissibility of the EIA for the four-well drilling programme - 60-day public observation period now underway.
- Strong realised gas prices of €0.67/scm during August, benefiting from supportive European gas market fundamentals and setting a record for revenue from gas sales at the field
- New 12-month gas agreement signed with Hera Trading S.r.l. ("Hera") starting 1 October 2026.
- Schlumberger Italy has delivered a preliminary dataset following processing of the recently completed 3D seismic survey. Detailed interpretation of the data will take place to confirm drilling locations for the planned 2027 drilling campaign.
- Completion and interpretation of seismic data will be used to commission a Competent Person's Report ("CPR"), providing an independent assessment and verification of the natural gas resources on the licence area.
- El Romeral
- Electricity generation revenue at El Romeral continue to strengthen, with August revenue of €179.4k, supported by consistent production and higher electricity prices. As a result Tarba Energía S.L. ("Tarba"), the owner and operator of El Romeral has become self-sufficient on a cash basis with strong electricity pricing expected to continue through Q3.
- The replacement of the rental transformer with the Company's new transformer is expected to take place in September. This will reduce operating costs and further improve Tarba's ability to be self-funding on a current basis.
- The final instalment for the purchase of the new transformer, due in Q4 2026, will be funded from existing cash resources.
- Poland
- Prospex continues to collate and access historical data across the San and Dunajec licences.
- Particular focus has been given to well and completion design for the Mniszów oil discovery on the Dunajec licence.
- The Company is evaluating advanced completion techniques to maximise the discovery potential of Mniszów and facilitate discussions with potential development partners.
- A site visit to the San and Dunajec licence areas is planned for mid-September.
- Viura
- Viura -1B produced continuously for 92 days with no shut-ins and 100% plant availability during Q2.
- The operator of the field, HEYCO Energia Iberia S.L. ("HEI" or the "Operator"), generated €4.15 million of cash revenue in Q2, against €3.59 million of cash operating expenditure.
- Planning for a 2027 development programme is ongoing, including testing the water injection capability of the shut-in ST3 well starting in Q4 2026, and the potential drilling of a development well in 2027.
Corporate
- An Investor Meet Company presentation providing an update on the Company's Polish licences: San and Dunajec, including the Mniszów oil discovery, is scheduled for Monday 21 September 2026.
Tom Reynolds, Prospex's CEO, commented:
'I am pleased with the progress we continue to make across our portfolio with record gross monthly revenue of €795.8k. I am particularly encouraged by Tarba's move towards cash self-sufficiency, which frees up resources for investment elsewhere in the portfolio. Record breaking cash generation from Selva also gives us further financial flexibility to advance our growth plans.
'This is a strong foundation from which to engage with potential partners and secure capital to support our 2027 programme. Identifying partners capable of providing non-dilutive funding is a key focus for the Company for the balance of 2026, allowing us to accelerate our development plans while protecting shareholder value.
'We are also looking forward to updating shareholders on the Mniszów oil discovery at our upcoming IMC later this month, as we continue to build the technical and commercial case for its development.'
Operational Update
El Romeral
Consistent production at Tarba, coupled with continued high electricity pricing, has delivered strong revenue performance during the peak summer months. Tarba has been self-sufficient on a cash basis for July and August, removing the need for funding from Prospex.
The replacement of the rental transformer with the Company's new transformer is expected in September. This will reduce operating costs and further support Tarba Energia's ability to be self-funding on a current basis. The final instalment for the new transformer, payable in Q4, will be funded from existing cash resources.
Selva Malvezzi
Gas production at Selva has been consistent throughout the summer against a backdrop of consistently high wholesale gas prices. Prospex achieved record revenue for the month of August for gas sales from Selva Malvezzi in over three years of continuous production. The Podere Maiar well continues to perform consistently with production in August at 2.5 MMscm (gross) for the month at an average price of €0.67 per Scm. This delivered gross revenue of €1,670,000 for the month (37% net to Prospex is €618k).
Po Valley Operations Pty Limited ("PVO") is a wholly owned subsidiary of Po Valley Energy Limited ("Po Valley Energy") (ASX: PVE) and is the operator of the Selva Malvezzi production concession and owns a 63% working interest. Prospex holds the remaining 37% working interest.
To support future gas sales, Prospex, through its subsidiaries PXOG Marshall Limited ("PXOG") and UOG Italia Srl ("UOG"), alongside operator PVO has signed a new gas sales agreement ("GSA") with Hera for the gas year commencing 1st October 2026. This follows on from last year's successful partnership agreement and cements all parties' commitment to supply locally produced gas to the community.
Hera Trading, a group entity headed by Hera S.p.A, with operational headquarters in the Bologna province (Emilia Romagna region), offers the Joint Venture the opportunity to collaborate with a local business and strengthen engagement with the local community. Hera is a major Italian multi-utility company listed on the FTSE MIB, Borsa Italiana's main Index, which includes the 40 largest stocks by capitalisation, liquidity and trading volume.
Schlumberger Italy has delivered a preliminary 3D seismic volume following processing of the raw acquisition data, and the final volume is expected soon. Prospex and the PVO team will interpret the data to de-risk future drilling. Several historical wells on the Selva concession can be tied to the seismic volume. Therefore, the interpretation can be extrapolated from known gas discoveries to the proposed drilling locations, using the new seismic. When this work is concluded, the joint venture will have revised risk profiles and volumetrics for the upcoming campaign, and in a position to refine landing positions at the reservoir level. The surface locations will not be affected, and there will be no need to change the EIA or the permits.
Following the review of the seismic data, the JV expects to commission an updated competent person's report, which would provide an independent verification of natural gas resources on the licence.
Poland
Prospex has continued to collate historical data on both the San and Dunajec licences.
A particular focus has been on the well and completion design for the Mniszów oil discovery situated in the Dunajec licence. The Prospex team has been working with execution partners to understand state-of-the-art completion techniques for developing fractured carbonate reservoirs and maximising the potential of the undeveloped discovery.
This work will form the basis of engagement with potential partners through the balance of Q3 and Q4, and a status update will be provided in the planned IMC presentation focusing on Mniszów later in September.
Viura
During Q2, Viura-1B produced continuously for 92 days, with no shut-in periods and 100% plant availability. There were no HSEQ incidents during the period. During Q2, the key financials of HEI on a cash basis were:
In 2025, a tool string was lost in Viura-1B during well operations. Recovery was required to enable a potential recompletion of Viura-1B and access to the lower Utrillas B discovery. A slickline operation was conducted between August 3-8, 2026, successfully recovering the entire tool string.
Field development planning has continued, and the core operational plan includes testing the water injection capability of the ST3 well (currently shut-in) in Q4 2026 and drilling a development well during 2027. This is an indicative timeline, and Prospex will provide further updates as this programme progresses.
Source: Prospex
