Prospex Energy (PXEN) , an investor in European gas and power projects, announced its final results for the year ended December 31, 2024 (FY24).
Prospex reported a substantial turnaround in FY24, narrowing its loss to £47k from £1.23m the prior year - a 96% reduction, signaling a return to profitability. The company reported strong revenues from its 3 producing gas assets onshore Europe - Viura and El Romeral in Spain, and Selva in Italy.
Cash and cash eq rose significantly to £1.19m from £3k LY. By March 2024, PXEN had settled all remaining interest-bearing debt, with no further debt needed or raised during the year. PXEN said all cash inflows were reinvested for growth, with all assets in its portfolio receiving further investment in FY24.
Shareholder equity jumped by 19.5% or £4.01m at year-end to £24.6m. Revaluation of investments showed an increase of 4.59% to £16.3m from £15.6m last year, and an unrealised gain of £714k - up from an unrealised loss of -£479k in FY23.
Post-period in April 2025, PXEN acquired 100% of Tarba Energia, giving it 100% indirect interest in El Romeral in southern Spain, and doubling its net production from the asset. PXEN also invested a further £903k post-period in its other Spanish asset - the Viura gas field, following its acquisition in August 2024. Both investments were funded from existing capital resources.
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Prospex announces a positive set of results for FY24 as it nearly swings to a profit with only a -£47k loss reported, up from a -£1.23m loss last year. Strong production from its 3 natural gas assets onshore Europe supported revenues while net asset value increased by £4m or 20%. In terms of balance sheet, PXEN ended the year debt-free, with over £1.1m in the bank, signaling a sustainable path forward and enabling steady reinvestment in its portfolio.
Looking ahead, the acquisitions of Tarba Energia and Viura (both onshore Spain) should support significant further growth. Tarba is the operator of El Romeral who used to own 50.1% of the asset, now being 100% under PXEN's control. 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.
The Viura field in northern Spain became Prospex's 3rd producing asset following PXEN's acquisition of 7.5% of Heyco Energy Iberia in August 2024. Initial flowrates from the Viura-1B well have been excellent at up to 500,000 scm/d, validating PXEN's investment. Following the acquisition, a further £903k was invested in FY25 for 2 more wells - the Viura-3A and Viura-3B, expected in 2026.
At Selva field in northern Italy, PXEN reported continued strong production and revenues, with gross gas production for FY24 totalling 10.2 million scm net to PXEN, and gross revenue reaching €3.8m net to PXEN at an average price of €0.37/scm. Average daily production increased steadily each quarter, ending the year at a steady 80,000 scm/day, with quarterly revenues to PXEN rising from €705k in Q1 to €1.25m in Q4.
PXEN extended its contract with BP Gas Marketing for Selva by another 12 months in October 2024. A further renewal is expected in October 2025. PXEN filed applications for 4 new wells on the Selva concession in Q3 2024, and a 3D seismic campaign was approved in January 2025. We expect production from the new wells to commence within a year.
The acquisition of Tarba and abovementioned capital investments were all funded from existing cash resources. PXEN also expanded into Poland in FY24, creating a wholly-owned subsidiary, following its application for onshore exploration in the country.
Looking ahead, investors can expect the 11 new wells across the 3 concessions to come online within the next 24 months, pending permits. PXEN should be able to fund the development of the new wells from existing production revenues, although fundraising is not being ruled out.
Given all active development across Prospex's European onshore gas investments, we see significant near-term upside within the existing concessions, with contingent and prospective resources being converted into developed producing reserves.
PXEN remains cash generative, with no debt, and well-positioned for further growth.
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