Prospex Energy plc (AIM: PXEN) said its Spanish subsidiary, Tarba Energía S.L., has secured a rental transformer for the El Romeral gas-to-power plant, allowing electricity generation and sales to resume by the end of January 2026.
The rental agreement will remain in place until delivery of a new, custom-built transformer, which is expected in the third quarter of 2026. As part of the arrangement, Tarba waived a €76,000 claim relating to lost production during the outage period.
Prospex also said permitting is in the final stages for five new natural gas wells at El Romeral, which contains more than 90 billion cubic feet of gas. The company said the additional wells have the potential to significantly increase power plant capacity and enable surplus gas to be supplied into the wider gas grid.
Mark Routh, Prospex’s CEO, commented:
“The Company is pleased to have sourced a rental transformer for the El Romeral plant. The transformer, which has an almost unique voltage and power specification is expected to be installed this week allowing Tarba to resume the production of electricity before the end of January.
“We remain confident in the value and development potential of the El Romeral asset and are pleased that the permitting to drill five new natural gas wells is in its final stages.
“The El Romeral power plant can reach full capacity from production from just two of the proposed five new wells. Any extra gas from the remaining new wells or any future wells drilled on the concessions will support expansion plans at the power plant as well as the ability to supply natural gas directly to the gas grid. The El Romeral concessions have substantial development potential with more than 90 bcf of gas[1] now owned 100% by Prospex.
“We will continue to keep shareholders updated on the permitting process. Since we are now in the final stage of receiving the permits to drill these five wells, we have started the process of optimising the funding of the wells by seeking potential debt funding and farm-in partners.”
