Prospex Energy (PXEN ) has reported unaudited financial indicators for the first three quarters of 2025 showing that most of its fresh investment has been funded from internal cash flows, while group sales remain on track to beat 2024 levels.
For the 9 months ending 30 September 2025, the company deployed £3.763 million of additional investments across its portfolio. Around £2.645 million, or 70%, came from internal resources, with the balance funded by a £1.118 million net equity raise in the third quarter. As a result, group cash and near-cash stood at £379,000 at the period end, a reduction of £1.26 million over the year driven mainly by increased spending on its assets rather than underlying weakness in the business.
Prospex's CEO Mark Routh noted that 2025 has been defined by reinvestment of production income into core projects. A key move was the acquisition of the remaining shares in Tarba Energía in April 2025, which lifted Prospex to 100% ownership of the El Romeral power plant, its three production concessions and the Tesorillo and Ruedalabola exploration licences in Spain. The Environmental Impact Assessment to drill five additional wells at El Romeral has now been submitted to the central ministry in Madrid, with the group awaiting final approvals.
Substantial further capital has also gone into HEYCO Energy Iberia, which owns and operates the Viura gas field in northern Spain, where Prospex holds a 7.5% stake. Routh frames this spending as a way to deepen exposure to long-life, cash-generative gas production in a tightly supplied European market.
In Italy, the Selva Malvezzi production concession continues to provide steady production and cash generation. A new gas sales contract with Hera Trading was agreed in the third quarter of 2025, underpinning revenues, while permits to drill four additional wells are described as advancing at pace. A 3D seismic survey now under way is intended to refine targets and improve the risk profile of those wells.
Looking ahead, Prospex is also pushing to add a new geography in Poland, where licence applications are in progress. The CEO frames this as part of a broader strategy to grow the company’s portfolio of gas reserves that can supply European markets where demand is strong.
The company continues to signal a flexible funding strategy for capital expenditure over the next two to three years. It is preparing to use a blend of farm-downs, debt finance, internal cash flows and, where appropriate, fresh equity, with all options being progressed in parallel to support growth and deliver shareholder value.
Routh added: "Prospex remains one of the few UK-listed companies offering investors direct exposure to onshore European gas markets, estimated to be valued at circ. US$130 billion in 2024, and expected to have a compound annual growth rate (CAGR) of 4.8% from the estimated US$130 billion in 2025 to 2033."
View from Vox
Prospex is leaning hard into reinvestment, recycling production cash into Spanish and Italian growth projects while keeping equity dilution relatively modest so far. The trade-off is a thinner cash cushion, but if approvals and new wells at El Romeral and Selva progress as planned, the expanded production base could justify the accelerated spend and support the company’s pitch as a focused play on onshore European gas.