Earnings release
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RNS Number : 8734OProspex Energy PLC03 August 2026 Prospex Energy plc / Index: AIM / Epic: PXEN / Sector: Oil and Gas 3 August 2026 Prospex Energy plc ("Prospex" or the "Company") Second Quarter 2026 Overview and Unaudited Group Financial Update Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on European natural gas and power projects, provides the following Q2 overview and unaudited quarterly cash-flow update for the Prospex group of companies (the "Group"), including Group cash balances under the Company's direct control at June 30th, additions to investments and receipts from gas sales for the second quarter of 2026. Q2 2026 Overview Cash · £1,203,000 of gas sales revenue from Selva Malvezzi reflecting higher European gas prices since March.· The Group closed Q2 with £852,000 (Q1 2026: £907,000) in cash after paying initial licence fees for newly awardedlicences in Poland and settling Selva 2025 production royalty and tax obligations. Romeral · Electricity generation revenue at Romeral continues to increase following a series of extended production tests andstrengthening electricity prices. This has reduced Tarba's net monthly funding requirement, with the reductionexpected to continue into Q3. In parallel, we continue to engage with the Spanish government to advancepermitting.· The Company entered into a strategic collaboration agreement with the IMMAGE (Investigating MioceneMediterranean-Atlantic Gateway Exchange) Land-2-Sea drilling project to recover cores from the wells to be drilledby Prospex within the five well programme which is currently awaiting permits. The coring is funded by theInternational Continental Scientific Drilling Program (ICDP). Viura · During the quarter, operator HEYCO Energy Iberia advanced the dynamic reservoir model and defined severaldevelopment scenarios for further drilling activity in 2027. Poland · Wholly owned Polish subsidiary, PXEN Tatra Sp. z o.o. was awarded, and accepted, the San and Dunajec licences inPoland. These offer both medium-term gas exploration potential and near-term cash-generative oil developmentpotential in the Mniszów oil resource. Corporate · Satisfactory completion of 2025 audit and Annual General Meeting ("AGM") requirements. An extensive review of theGroup's cost base and ongoing active measures were put in place to minimise costs, whilst identifying anddeveloping assets and strengths. · Simon Ashby-Rudd was appointed as non-executive director, bringing significant capital markets and acquisitionsexpertise. Andrew Hay, who has served as a non-executive director of the Company since 2024, did not stand for re-election at the Company's AGM and stepped down from the board.· Creation of full potential modelling for each asset and the associated investment cases in support of engagementwith prospective partners and investors.· Ongoing review of potential new investments with self-funding and near-term cash-generative potential. Prospex Energy Group - Unaudited 2026 2025 ALL GBP 000's YTD Total Q2 Q1 Total £000's £000's £000's £000's Note
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Group Cash on Hand at Beginning of period 1 42 907 42 1,192 Share of Gross Operating Revenue 2 2,115 1,203 912 3,798 Tarba Cash Take-on in acquisition - - - 332 Equity Raise Proceeds Net of costs - - - 1,118 Debt Raise Cash Proceeds net of costs 3 1,355 - 1,355 378 Interest and other financing receipts 112 83 29 122 Total Group Cash Receipts 3,583 1,286 2,297 5,749 OPEX 4 1,349 547 802 2,303 Development Costs 5 301 1 300 593 Investments - Tarba Acquisition - - - 474 Investments - Interest bearing loans to Tarba 6 558 267 292 748 Investments - Viura - - - 2,003 Debt Servicing and Repayments - - - - Royalties, taxes and license fees 7 564 526 38 778 Total Group Cash Outgoings 2,772 1,341 1,432 6,899 Group Cash on Hand at End of period 852 852 907 42 1 Group cash represents the cash resources within the Company's control and therefore excludes any cash balances held by HEYCO Energy Iberia, in which Prospex owns 7.5%, and funds held in guarantee deposits. 2 Gross operating revenues only include receipts into group entities under Prospex control and therefore excludes Viura. 3 Debt raise proceeds are shown net of costs & any pre-existing debt satisfied by issuance of CLNs. 4 OPEX includes direct operating expenditure corresponding to Prospex's net share of Selva Malvezzi, as well as Prospex overhead and administration costs. 5 Development costs in 2026 primarily relate to seismic processing on Selva Malvezzi. 6 Tarba Energia Opex, net of electricity sales, is supported while the activity to deliver drilling permits on El Romeral is progressing. 7 Q2 2026 includes £177k new permit fees in Poland. Selva Malvezzi Continued safe and reliable production from the Podere Maiar-1 (PM-1) gas field · Environmental Impact Assessment (EIA) lodged with Italy's Ministry of Environment and Energy Security (MASE) forthe proposed four-well drilling programme and related development within the Selva Malvezzi ProductionConcession; representing a significant permitting milestone.· Data processing of the recently completed 3D seismic survey continued during the quarter, supporting optimal wellplacement and future field development planning, including the Podere Maiar 1 gas field production area.· Strong realised gas prices of €0.48/scm, benefiting from supportive European gas market fundamentals amid ongoingenergy security concerns. Selva Malvezzi financial highlights PM-1 Production Data June 2026 Quarter Mar 2026 Quarter Dec 2025 Quarter Q2 2026 Q1-2026 Q4 2025 Average gross daily production rate (scm) 77,127 80,687 79,220 Quarterly net (37%) production ('000 scm) 2,597 2,686.90 2,579.40 Weighted average price (per scm) € 0.48 € 0.43 € 0.33 37% Revenue net to Prospex ('000)* € 1,255 € 1,155 € 852
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*Note: revenue net to Prospex in the quarter will differ from cash receipts presented in the unaudited cashflow analysis due to timing of payments received Poland Historical data was gathered and integrated to provide a clear view of the potentially recoverable resource at the Mniszów oil discovery. This increased the Company's view of the asset's potential to 3.7 mmbbl of recoverable oil and supported the case presented within the Full Potential analysis at the AGM in June. El Romeral, Spain Over the quarter, a series of production tests were conducted to better understand the well's ability to support increased generation activity. This has increased generation from 4 hours per day to 15 hours per day during late June and July following the end of the quarter. Combined with higher electricity prices, revenue generated at Tarba increased from c. €20,000 in April 2026 to c. €73,000 in June 2026. This has significantly reduced the need for Prospex support, freeing cash for investment in other assets. The manufacture of the new transformer is complete and it will be installed in September, replacing the rental unit and reducing overheads further at Tarba. Viura, Spain During the quarter, operator HEYCO Energy Iberia advanced the dynamic reservoir model and defined several development scenarios. The production strategy was set to maximise cash generation by taking advantage of high gas prices. Viura Production Summary Jun '26 May '26 April '26 Q1 2026 Sales Gas Nm3 1,959,552 2,973,296 843,966 10,500,000 Sales Gas MWhr 26,592* 39,644 11,660 112,000 Condensate m3 88 142 40 446 Condensate bbl 553 892 248 2,805 Water m3 7,656 7,099 2,276 16,645 *June sales gas expressed in MWhr is estimated, pending confirmation Tom Reynolds, Prospex's CEO, commented: "I am pleased to provide shareholders with an overview of Q2 2026 activities, including unaudited Group cash-flow figures for the period. During Q2, we reevaluated our investment portfolio, made significant progress on each asset, and conducted detailed analysis of the investment options available to us. "During the quarter, strong European gas prices have supported higher levels of cash generation at Selva Malvezzi. We have also seen higher wholesale electricity prices for Tarba, where the team worked diligently through Q2 to increase total generation time and minimise costs. This has increased Tarba's net revenue, reduced the monthly cash requirement and freed up cash for other assets. "On Mniszów, significant work has been carried out by the team to understand and estimate the in-place resources and identify potential technical solutions to efficiently access those resources. I believe this asset offers a near-term opportunity to introduce partnership capital to fund initial well work. "The AGM provided an opportunity to demonstrate the full potential of the Prospex portfolio, which I believe will strengthen our ongoing discussions with prospective funding and strategic partners. To support this process, and as indicated at the AGM, we will run a series of asset-focused online presentations beginning in September providing a detailed review of each asset." The information contained within this announcement is deemed by the Company to constitute inside information asstipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtueof the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit)Regulations 2019.
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Prospex Energy is an Investment entity as defined by IFRS 10, and as such the results of its subsidiaries are not consolidatedup to the parent company in its statutory and audited reporting. Those audited financial statements therefore represent thefinancial position of the Company on a standalone basis, and the Company's investments in its subsidiaries, joint venturesand underlying assets are recognised at fair value through the profit and loss. The unaudited figures included in thispresentation, are not provided to meet any statutory or regulatory requirement and should not be used as a basis of aninvestment decision. * * ENDS * * For further information visit www.prospex.energy or contact the following: Tom Reynolds Prospex Energy PLC Tel: +44 (0) 20 7236 1177 Ritchie Balmer Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409 3494 Andrew Monk (Corporate Broking) Andrew Raca (Corporate Finance) VSA Capital Limited Tel: +44 (0) 20 3005 5000 Neil Passmore Leif Powis Hannam & Partners Tel: +44 (0) 20 7907 8500 Ana Ribeiro / Charlotte Page St Brides Partners Limited Tel: +44 (0) 20 7236 1177 About Prospex Energy Prospex Energy plc is an AIM-quoted investing company focused on high-impact onshore and shallow offshore European opportunities with short timelines to production. The Company's strategy is to acquire undervalued projects with multiple, tangible value trigger points that can be realised within 12 months of acquisition and then apply low-cost re-evaluation techniques to identify and de-risk prospects. The Company will rapidly scale up gas production in the short term to generate internal revenue, which can then be deployed to develop the asset base and further increase production. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END