Prospex (PXEN ), an investor in European gas and power projects, announced final results for FY22 ended 31 December 2022. Prospex reported total assets of £16m, up 240% from £6.6m in FY21.
Hybrid financing has enabled Prospex to fully fund its 37% share in the valuable Selva field to the point of first gas, scheduled for Q2 2023. Cash and cash eq at year-end was £1.48m, up from £220k in FY21.
At its El Romeral gas plant in Spain, Prospex saw peak gross monthly revenues of €500k in March 2022. "Project Helios" is a planned 5 MW solar installation to be built adjacent to El Romeral that will increase its output by 60%. Project Helios is expected to be completed in less than 12 months.
Prospex's results lay the foundation for a transformational year ahead. Gas production is imminent at Selva, and El Romeral has several future planned wells proceeding through the permitting process to boost capacity, in addition to the solar project.
El Romeral is currently running at 30% capacity with just one of its 3 engines generating - with 2 of the 3 proposed wells connected, all 3 engines will be able to run and achieve the 8.1 MW nameplate capacity, to be later supplemented with 5 MW from adjacent solar.
Post-period, Prospex signed a joint gas sales agreement to offtake and sell gas from Selva field. In May 2023, the gas plant construction, including gas grid connection, at Selva was completed and ready for commissioning.
The outlook for Prospex remains one of consolidation and growth. The 240% increase in net book value to £16m reflects the revaluation of the company's 37% working interest in Selva field, following acquisition of another 20% interest from UOG. Cash also increased materially to £1.48m from £220k last year. Prospex continues to have significant asset backing relative to its market cap.
Investors continue to cheer on the company, with its share price rising 348% in 2022, and currently up 112% in the past 12 months after some consolidation following normalisation of gas prices.
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