Prospex Energy (PXEN) , an investor in European gas and power projects, issued an operational update on production, development and drilling schedules across its portfolio of 3 natural gas assets onshore Europe - Viura and El Romeral in Spain, and Selva in Italy.
At the Viura field in northern Spain where Prospex has 7.24% interest, operator HEYCO is in the final stages of restoring the Viura-1B well to production following a shutdown in April 2025 caused by a leak in the production tubing. Repairs are expected to be finalised by mid-August, with production set to restart soon after.
Initial flowrates from Viura-1B were excellent. From its start-up in December 2024 to the end of Q1 2025, the well produced 30.2 MMscm (1.1 Bcf) of natural gas, with 4.4 MMscm (154 MMscf) net to Prospex.
At Selva field in northern Italy where PXEN has 37% interest, gross gas production continued to average a steady ≈80,000 scm/d in Q2 2025 (30,000 scm/d net to PXEN) after the facility ramped up to nameplate capacity in late 2024. Production increased slightly quarter-on-quarter to 7.260 MMscm, up from 6.724 MMscm in Q1, with 2.686 MMscm net to PXEN. PM-1 continues to sell the gas to BP Gas Marketing.
Additionally, operator Po Valley is advancing permitting for its broader Selva development program, focused on 4 new wells - Casale Guida 1d (Selva North), Ronchi 1d (Selva South), Bagnarola 1d (Riccardina), and Selva Malvezzi 1d (East Selva). Field activities are scheduled from October 2025 for a 3D geophysical survey for the broader program.
At the El Romeral power plant in southern Spain where PXEN has 100% interest, production was paused on July 1, 2025 due to delays in replacing its main transformer, initially expected to take 2 weeks. Operator Tarba Energia is receiving c. €4,000/day in compensation for lost production, with the new transformer now expected to arrive in August. PXEN is waiting on permits for 5 new wells on the El Romeral concession to boost production to 8.2MW, expected in Q4 2025.
PXEN also reported progress on its planned expansion in Poland where it has submitted licence applications for blocks in proven gas-producing areas that can be brought online in 2-3 years. The applications are currently under review by the Polish Ministry of Climate and Environment, with public gazetting and proposed work program details expected soon.
Mark Routh, Prospex's CEO, commenting: "We are pleased with the consistent production performance achieved at Selva from the PM-1 well during the quarter, which marks an important milestone for the project. In addition, we're encouraged by the progress made and recent amendments implemented to advance the next stage of development at Selva, aligning with our broader growth strategy. I appreciate the interruptions at some of our other projects are frustrating. Circumstances beyond our control have unfortunately collided to impact operations at our investments, but with our operators we have a clear and proactive plans in place to swiftly and effectively manage this and reset us on our production and development path.
"The value of our portfolio remains strong; we still hold strategic interests in producing natural gas assets and have significant volumes of Proven, Contingent and Prospective natural gas resources ready to be unlocked. I am confident that the ongoing actions of our operators will ensure the recommencement of production at Viura and at El Romeral in the near term and the continuing expansion of Selva. We are committed to maintaining transparent communications with our shareholders and will continue to share further updates on progress from our respective operators as soon as we are in a position to do so."
View from Vox
Prospex continues to make steady progress across its European natural gas portfolio, with consistent production from its PM-1 well at Selva delivering strong revenues for another quarter (€1.06m net to PXEN). A major expansion program is underway at Selva, targeting 4 new wells, with drill permits expected in H2 2025. The wells aim to access a gross 88 Bcf of gas (33 Bcf net to PXEN), with drilling anticipated to begin in Q4 2025 or early 2026.
Temporary interruptions at Viura-1B and El Romeral are expected to be resolved in August, and should not impact revenues significantly as Tarba is receiving adequate compensation for lost production time at El Romeral. Initial flowrates from Viura-1B were excellent at up to 500,000 scm/d, and the well produced 4.4 MMscm net to PXEN from startup in December 2024 through end of Q1. Following PXEN's acquisition of Viura, £903k was invested in FY25 for 2 more wells - the Viura-3A and Viura-3B, targeted to spud in 2026.
Prospex currently owns 7.24% of Viura through its interest in HEI. Prospex receives 14.47% of production income from Viura until payback of its initial capital investment (c. £8m) plus 10% p.a. interest thereon. Currently, the gas field has estimated gross remaining reserves of 90 Bcf (6.5 Bcf net to PXEN), expected to grow with further evaluation.
Viura is one of 3 onshore gas fields in Spain, alongside El Romeral where Prospex recently increased its stake to 100%, making it a leading gas producer in the country. Tarba, the operator of El Romeral, used to own 50.1% of the asset before being fully acquired by PXEN. The Tarba acquisition also gave PXEN full ownership of the Tesorillo and Ruedalabola exploration permits in Cadiz. PXEN is waiting on permits for 5 new wells on the El Romeral concession to boost production to 8.2MW, expected in Q4 2025.
Looking ahead, the acquisitions of Tarba Energia and Viura should support significant growth. In total, investors can expect 11 new wells across the 3 concessions to come online within the next 24 months, pending permits. Proceeds from recent fundraising, combined with strong ongoing production revenues, should enable PXEN to fund the new wells while maintaining a debt-free balance sheet.
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