Prospex Energy reports rise in net production across Europe assets
8th Apr 2025 12:30
(Sharecast News) - Prospex Energy reported a 187% year-on-year increase in net production across its European gas assets in an update on Tuesday, with current rates averaging around 70,000 standard cubic metres per day, equivalent to 2.5 million standard cubic feet or 424 barrels of oil equivalent per day.
The AIM-traded firm said the increase was driven by ramped-up activity at the Viura and Selva fields, alongside elevated energy prices.
At Viura, which accounts for 45% of net production, average gross output during February and March stood at 217,000 standard cubic metres per day, with Prospex's net share at 31,400 standard cubic metres daily.
While flow rates had moderated since early January highs, the board said the field remained a key contributor.
The Viura-3 well had now been suspended after it was deemed unsuitable for conversion to water injection.
Drilling of the new Viura-3B well was now expected to begin in the second quarter, following a six-to-eight week delay, with long lead items secured using production income.
Selva accounted for 43% of Prospex's net output during the period, with stable gross production averaging 79,800 standard cubic metres per day, and net to Prospex at 29,900 daily standard cubic metres.
The operator expected to begin 3D seismic acquisition at the Selva Malvezzi concession in the third quarter, the Prospex board said, with drilling of four additional wells targeted for late 2025 or early 2026, pending permitting and equipment procurement.
At El Romeral in southern Spain, gross production averaged 17,300 standard cubic metres per day, with all output used for electricity generation.
Prospex said its net share was 8,700 standard cubic metres daily, and around 850 megawatt-hours of power.
Following completion of the acquisition of Tarba's remaining equity later this month, Prospex said its net interest in El Romeral would double.
The statutory consultation period for drilling five new wells at the site ended on 4 April, with regulatory approval set to possibly be granted in the fourth quarter, subject to the pace of review by MITECO, the central energy ministry.
Separately, Prospex said it had appointed Hannam & Partners as its joint corporate broker alongside VSA Capital.
It said H&P was expected to initiate research coverage in late April, and would support the company with ongoing market communications.
"Operations continue to make solid progress across our portfolio of assets," said chief executive officer Mark Routh.
"As an investing company rather than an operator, we do not control on-the-ground activities or the timeframes associated with permitting.
"However, our deep sector knowledge and subsurface expertise combined with our understanding of the growing energy demand across Europe, has helped drive a net production increase of over 187% since the same period in 2024."
Routh said that had led to a commensurate increase in net revenues in line with that increase in production, adding that the growth had enabled Prospex to make strategic acquisitions, including the Viura asset last August and the proposed acquisition of Tarba, funded from production income, which should complete later in the month.
"I remain confident in our ability to continue delivering sustainable growth for the benefit of all shareholders.
"To this end, I am extremely pleased to announce the appointment of Hannam & Partners as our joint corporate broker."
Mark Routh described Hannam & Partners as a specialist in the natural resources sector, adding that it would provide the company with an enhanced package of services including the preparation of an analyst's research note on the firm for existing and potential investors.
"I am excited to be working closely with the team at Hannam & Partners in the coming months as we increase our natural gas production and cash flow from our asset portfolio in both Italy and Spain."
At 1121 BST, shares in Prospex Energy were down 1.71% at 5.75p.
Reporting by Josh White for Sharecast.com.