A mixed session across the oil and gas patch saw one small-cap quietly build cash and revenue on the back of surging European gas prices, while a London-listed services giant cut guidance as Middle East disruption bites, an Alaskan explorer landed a sizeable farm-out partner, and a Western Australian helium hopeful pushed back its drilling timeline once again.
Prospex Energy lifts revenue and cash on strong gas prices
Prospex Energy (AIM:PXEN) reported combined third-quarter revenue of £1.7m from its Selva Malvezzi and Tarba Energía assets, up from £1.2m in the second quarter, with the AIM-quoted gas and power investor closing the period with £1.515m in cash, a 78% jump on the £852,000 held three months earlier. Shares in the company eased 5.48% to 5.766p despite the improved numbers, with operational hiccups at its flagship Italian asset weighing on sentiment even as pricing tailwinds did the heavy lifting.
The operator of Selva Malvezzi trimmed the gas flow rate at the Podere Maiar-1 well to around 60,000-62,000 standard cubic metres a day in the second half of September after formation-water production climbed from 40-45 litres a day to 70-100 litres a day. A slickline intervention at the end of September found water production had stabilised at 80-90 litres a day, with pressures normal and no sand or silt detected, and management now plans to lift the flow rate back to 62,000-65,000 scm/d by the end of October if conditions hold, with the next intervention scheduled for January 2027. Strong European gas prices more than offset the throttled flow: the weighted average realised price hit €0.69/scm in the quarter, generating gross revenue of €4.566m and €1.689m net to Prospex's 37% stake, with prices reaching €0.75/scm by late September and October indications above €0.80/scm. Schlumberger Italy has also delivered preliminary 3D seismic data to firm up drilling locations ahead of a planned 2027 campaign, with Italy's environment ministry having declared the environmental impact assessment for a four-well programme admissible.
"Ending the quarter with a strong cash balance of over £1.5 million provides Prospex with sufficient cash to progress assets in the near term, by introducing partnership capital at the asset level where the Company has engaged with a number of interested counterparties," said Tom Reynolds, Chief Executive.
The combination of rising cash, a new 12-month gas sales agreement with Hera Trading and near-record European gas pricing gives Prospex room to negotiate from strength rather than necessity as it seeks partnership capital for the 2027 Selva Malvezzi drilling campaign. The well-management issue at Podere Maiar-1 is a near-term drag worth watching, but with pressures stable and no mechanical red flags, it reads as a manageable production constraint rather than a structural problem, one the company can afford to work through patiently given its strengthened balance sheet.
Hunting lowers profit outlook as Middle East disruption deepens
Hunting (LSE:HTG) cut its full-year EBITDA guidance to US$128-133m, down from the $138-141m range flagged in August, after the deepening conflict in the Middle East hit trading in the third quarter and carried into the fourth. Shares in the precision engineering group, which supplies tools and equipment to the oil and gas industry, fell 8.93% to 387.5p on the announcement.
Year-to-date EBITDA stands at approximately $89m, with a margin of around 12%. Chief executive Jim Johnson said the group's long-term fundamentals remain robust, pointing to continued strong trading in its Subsea-focused businesses, but acknowledged that "the protracted and deepening nature of the conflict in the Middle East has impacted our overall results in Q3 and into Q4, with a deterioration in the short-term trading outlook seen in recent weeks." Hunting Titan's third-quarter performance ran marginally behind its projected outturn, with a notable slowdown in Middle East deliveries and some softening in North America compounding the pressure.
The downgrade underscores how exposed Hunting's order book remains to geopolitical shocks even as its Subsea franchise performs well, and the sharp share price reaction suggests investors are recalibrating how durable that regional disruption will prove heading into next year.
88 Energy agrees farm-out with WAO for South Prudhoe stake
88 Energy (AIM:88E) has signed a farm-out agreement with Houston-based Westlawn Americas Offshore covering its South Prudhoe Project on Alaska's North Slope, securing up to US$10.9m toward drilling and evaluating the Augusta-1 exploration well. Shares dipped 2.22% to 1.1p despite the deal, which brings in fresh capital for a key well without diluting the company's control of the project.
88 Energy will retain a 60% working interest and operatorship in South Prudhoe, with WAO taking the remaining 40%. WAO will fund US$9.2m of the Augusta-1 well budget, the first US$3.6m of spend plus 40% of costs thereafter, equivalent to roughly 52% of the current planned budget, alongside a further US$1.7m toward general and administrative costs, geology and geophysics work, lease costs and long-lead items for a potential future flow test. 88 Energy remains on the hook for its proportionate share of US$8.3m in well costs and US$2.3m in other expenditure.
Landing a funded partner for Augusta-1 de-risks the well financially while leaving 88 Energy in the operating seat, a structure management is framing as validation of the prospect's quality. "Securing a partner of WAO's calibre is a tremendous outcome for 88 Energy shareholders and is, without a doubt, a defining milestone in the advancement of the South Prudhoe Project," said the company's Managing Director.
Georgina Energy pushes back Hussar spud date on rig delay
Georgina Energy (LSE:GEX) said mobilisation of the Ensign Rig 970 to its Hussar prospect will now take eight to ten weeks from formal notification, as ongoing road closures to heavy vehicles and variable weather continue to delay the rig's arrival. Shares slumped 25.06% to 6.58p on the news, a sharp reaction that reflects mounting investor impatience with a timeline that has already slipped from a September spud target.
The company, which targets helium, hydrogen and natural gas at Hussar within Exploration Permit 513 in Western Australia's Officer Basin through its subsidiary Westmarket O&G, has completed all civil engineering and site works needed to facilitate drilling, with contractors already demobilised from site. Mobilisation costs will rise further, split between Ensign and Westmarket, to cover a revised route survey from August and September that requires additional transport equipment, an extended route and higher fuel prices.
Repeated slippage on logistics rather than subsurface risk is becoming the dominant narrative around Hussar, and the scale of today's share price fall suggests the market is losing patience with external delays outside the company's control. Chief executive Anthony Hamilton said Georgina "is working with Ensign to facilitate mobilisation as quickly as possible and we anticipate that road closures due to unseasonal weather conditions will be overcome with careful planning," but with no firm spud date yet attached to the new mobilisation window, the near-term overhang on sentiment looks set to persist.