Prospex Energy (PXEN ) has completed the statutory Environmental Impact Assessment (EIA) consultation process for five new natural gas wells at its El Romeral production concessions in southern Spain, with no objections received from any of the 29 consultees. The full suite of EIA documentation has now been submitted to Spain’s Ministry for the Ecological Transition and the Demographic Challenge (MITECO), moving the permitting process into its final stage.
The EIA package for Tarba Energía S.L. (100% owned by Prospex) was lodged with MITECO in Madrid on Friday 14 November 2025. The statutory consultation, which was publicly gazetted in February 2025, drew no adverse comments from statutory bodies, non-governmental organisations, local stakeholders, regulators, residents or town councils. The only feedback focused on enforcing mandatory legal obligations already set out in the EIA reports.
MITECO will now assess and evaluate the full EIA documentation before deciding whether to recommend a Ministerial resolution to approve the well permits. The ministry has indicated a target timeline of 90 to 180 days for this final review phase, allowing time to collate internal assessments and all statutory reports from national and regional authorities.
The five planned wells are designed to target the lowest risk structures on the El Romeral 1, 2 and 3 concessions, with best estimate contingent and prospective resources of 18.2 billion cubic feet (bcf) of gas. Overall, Prospex has identified a resource base of more than 90 bcf of gas within the concessions, all now 100% owned by the company. The shallow wells, at an average depth of about 700 metres, are expected to take around three to four weeks each to drill once a rig is mobilised.
While the permitting has been progressing, Tarba has advanced key preparatory work for the drilling campaign. This has included detailed well design, sourcing long-lead items and evaluating contractors and equipment required to deliver the programme of five new production wells. In addition, Tarba has initiated a project to record background seismicity across the El Romeral concessions. Although not a formal requirement, this study was recommended during the EIA process to demonstrate that future gas extraction does not trigger seismic events.
El Romeral’s production concessions were granted a ten-year extension in July 2024, securing their term until July 2034. Gas from the new wells is intended to supply Tarba’s on-site power plant, which can reach full output capacity with production from just two of the proposed wells, with any excess gas from additional wells or future drilling expected to support power plant expansion and potential direct sales into the gas grid.
Prospex has also updated on operations at the El Romeral power plant, where electricity generation remains suspended following the removal of the leased transformer on 1 July 2025. After a competitive tender, Tarba has placed an order with a Spanish vendor for a replacement transformer built to the plant’s specific voltage and power requirements. Delivery, which typically takes around ten months, is being accelerated with a target of around six months, supported by regular quality, schedule visits and factory acceptance tests.
The original lessor, which removed the transformer on the basis that a replacement would be provided within weeks and compensation paid for lost revenues, has neither delivered a rental replacement nor honoured the agreed payments. Tarba is now seeking recovery from the lessor and has implemented staffing reductions and wider cost-saving measures in response to the unplanned outage.
Prospex's CEO Mark Routh said: “We are delighted to be making good progress in the complex permitting process which has now moved to the final stage. I also take this opportunity to update shareholders on the El Romeral plant's transformer. I am pleased to report that we have now placed an order for a new transformer for the El Romeral plant from a Spanish supplier. The transformer, which has an almost unique voltage and power specification, should be delivered and installed in the first half of next year. In the meantime, electricity production is suspended but useful work is being undertaken at Tarba in anticipation of the company being back in operation as soon as we are able.
"We remain highly confident in the overall value of the El Romeral asset and its future development potential and are pleased that the permitting process to drill five new natural gas wells has taken a significant step forward. The process to apply for permission to drill natural gas wells in Spain is lengthy and complex and as we have experienced comes with unexpected delays in recommended timelines. It is a testament to the professionalism and quality of our team and advisers that the EIA documentation submitted has resulted in no objections or concerns. The only comments received from the statutory consultees were to confirm that mandatory legal obligations that are already included in the EIA reports are to be enforced.”
View from Vox
Clearing the statutory EIA consultation without objections removes a major permitting hurdle for Prospex at El Romeral and puts the project on a clearer path to drilling. The 90 to 180 day target for MITECO’s final review, while indicative, gives investors a rough window for when well permits might be secured, which would in turn unlock a drilling campaign targeting 18.2 bcf of low-risk gas and support long-term monetisation of a 90 bcf-plus resource base.