Prospex Energy (AIM:PXEN), the AIM-quoted investment company focused on European natural gas and power projects, reported £1.2m of gas sales revenue from its Selva Malvezzi field in Italy for the second quarter, reflecting stronger European gas prices since March.
The Group closed the quarter with £852,000 in cash, down from £907,000 at the end of the first quarter, after paying initial licence fees for newly awarded Polish licences and settling 2025 production royalty and tax obligations at Selva Malvezzi.
Realised gas prices at the Podere Maiar-1 field averaged €0.48 per standard cubic metre, and an Environmental Impact Assessment for a proposed four-well drilling programme has been lodged with Italy's environment ministry.
At the El Romeral asset in Spain, extended production tests lifted daily generation from four hours to 15 hours by late June and into July, pushing monthly revenue at operating subsidiary Tarba from about €20,000 in April to about €73,000 in June, easing the Group's funding burden there.
Wholly owned subsidiary PXEN Tatra was awarded the San and Dunajec licences in Poland, adding exploration potential alongside near-term development prospects at the Mniszów oil resource, now estimated at 3.7m barrels of recoverable oil.
Simon Ashby-Rudd joined the board as non-executive director with capital markets and acquisitions experience, while Andrew Hay stepped down at the AGM.
"I believe this asset offers a near-term opportunity to introduce partnership capital to fund initial well work," chief executive Tom Reynolds said of Mniszów.
Asset-focused online presentations for investors are scheduled to begin in September.
News Intelligence what this means for the company
Prospex Energy reported Q2 gas sales of £1.2m from its Italian Selva Malvezzi field, driven by higher European prices, while its Spanish El Romeral asset nearly tripled monthly revenue to €73,000 in June through extended production tests. The company closed the quarter with £852,000 cash after funding Polish licence acquisitions and settling Italian tax obligations. An Environmental Impact Assessment for a proposed four-well drilling programme at Podere Maiar-1 has been lodged with Italy's environment ministry, and management is seeking partnership capital to develop the Polish Mniszów oil resource (3.7m barrels recoverable).
Revenue generation from Selva Malvezzi and El Romeral is now demonstrable, though the £852,000 cash position leaves limited runway for organic development without external funding. The CEO's stated intent to bring in partnership capital for Mniszów and the scheduled September investor presentations suggest near-term capital-raising activity, which will determine whether the company can fund its drilling and exploration pipeline or face dilution.
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