reported significant operational and strategic progress during the first half of 2026, with higher cash generation from its producing assets alongside advances across its development portfolio in Italy, Spain and Poland.
At the Selva Malvezzi gas field in Italy, the Podere Maiar-1 well continued stable production, delivering gross output of 14.28 million cubic metres during the period, of which 5.28 million cubic metres was attributable to Prospex's 37% interest. Gas was sold at an average realised price of €0.46 per cubic metre, generating €2.41 million of revenue net to Prospex.
Development work at Selva also progressed, with new 3D seismic data being processed to support future drilling plans. Operator Po Valley Energy submitted an Environmental Impact Assessment covering four proposed new wells, which was declared admissible after the period end and entered a 60-day public observation period.
Prospex also signed a new 12-month gas sales agreement with Hera Trading after the period end, starting on 1 October 2026. The company said high gas prices helped Selva deliver record gas sales revenue in August.
In Spain, the El Romeral gas and power plant resumed electricity generation in January following installation of a rental transformer. Improved well management subsequently extended generation from around four hours per day to as much as 16 hours per day.
A permanent transformer was installed after the period end, lowering operating costs, while higher generation and electricity prices enabled operating company Tarba Energia to operate without further Prospex funding from July.
Prospex has also agreed a collaboration with the IMMAGE Land-2-Sea drilling project, which will contribute up to US$1.5 million towards coring and logging work at El Romeral. The arrangement will provide Prospex with additional geological data at no extra cost.
Meanwhile, Prospex continued to advance its recently awarded San and Dunajec licences in Poland. The Dunajec licence contains the undeveloped Mniszow oil discovery, where the company has processed historical data and is assessing options to develop the field as an oil producer.
A detailed development presentation released in September set out a base case plan and economics for Mniszow.
During the period, Prospex completed its convertible loan note issuance, raising about £2 million compared with an original target of £1.6 million. Cash and cash equivalents at 30 June stood at £524,643, compared with £38,935 at the end of 2025, while a further £327,368 was held in its wholly owned investment companies.
Net asset value increased to £23.30 million at the end of June from £22.94 million at 31 December 2025.
Prospex Energy’s CEO Tom Reynolds said: “The first half of 2026 has been a pivotal period for Prospex, with our producing assets generating increasing cash flow while we have continued to advance our development and exploration portfolio. Since period end, this progress has accelerated – with record monthly revenues, Tarba achieving cash self-sufficiency, and Selva’s EIA progress.
“Our focus for the remainder of the year is to build on the success of the first half by maximising the net cash flow from our producing assets whilst advancing development plans with our partners on each asset. A primary objective is to engage with partnership investment to support this activity. I am particularly excited about our Polish licences, which provide investors with blue sky potential in a supportive-oil and gas jurisdiction, and I look forward to updating shareholders on our progress.”
View from Vox
Prospex enters the second half with stronger cash generation from its producing assets and several potential growth catalysts. Progress on Selva's proposed four-well development, El Romeral's improved economics and plans for the Mniszow oil discovery provide multiple routes to expand production and cash flow.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
