Prospex Energy (AIM:PXEN), the AIM-quoted investment company focused on European gas and power projects, said Italy's Ministry of Environment and Energy Security has declared admissible the environmental impact assessment (EIA) for its planned four-well drilling programme at the Selva Malvezzi field.
A 60-day public observation period is now underway.
The update coincided with record monthly gross revenue of €795,800 across the portfolio, chief executive Tom Reynolds said.
At Selva Malvezzi, August gas sales achieved a realised price of €0.67 per standard cubic metre, generating gross revenue of €1.67m, of which €618,000 was net to Prospex's 37% working interest; the field is operated by Po Valley Operations, a subsidiary of ASX-listed Po Valley Energy, which holds the remaining 63%.
A new 12-month gas sales agreement with Hera Trading starts on 1 October.
Schlumberger Italy has delivered preliminary 3D seismic data that will be interpreted to firm up drilling locations ahead of the 2027 campaign and to commission an updated competent person's report on the licence's gas resources.
In Spain, El Romeral generated €179,400 of electricity revenue in August, enough for operator Tarba Energía to become cash self-sufficient for July and August.
A rental transformer replacement due in September should further cut operating costs, with the final instalment funded from existing cash in the fourth quarter.
At the Viura field in Spain, operator HEYCO Energia Iberia generated €4.15m of cash revenue in the second quarter against €3.59m of cash operating expenditure, with the Viura-1B well running 92 days without interruption.
"Record breaking cash generation from Selva also gives us further financial flexibility to advance our growth plans," Reynolds said, adding that securing non-dilutive funding partners for the 2027 programme is a key focus for the remainder of the year.
Prospex will update shareholders on the Mniszów oil discovery on its Polish Dunajec licence at an Investor Meet Company presentation on 21 September.
News Intelligence what this means for the company
Italy's environment ministry has declared Prospex's four-well Selva Malvezzi drilling plan admissible, clearing a key regulatory gate and opening a 60-day public consultation period ahead of the 2027 campaign. The timing coincides with record monthly revenue of €795,800 across the portfolio and a new 12-month gas sales agreement with Hera Trading starting 1 October, signalling both operational momentum and improved commercial terms for the company's Italian flagship asset.
- Po Valley Energy, which operates Selva Malvezzi and holds 63% of the field, advances its own development timeline in tandem with Prospex's 37% stake.
- The 60-day public observation period is a procedural gate; opposition or material conditions could delay or reshape the 2027 drilling plan, though admissibility suggests the assessment met baseline technical and environmental standards.
Regulatory de-risking of a near-term production growth driver, combined with cash generation now funding transformer upgrades and non-dilutive funding pursuit, strengthens Prospex's ability to self-fund growth without shareholder dilution. The company's focus on securing external partners for the 2027 programme suggests it is managing capital discipline while advancing material reserves.
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