Prospex Energy PLC (AIM: PXEN) reported a stronger financial position and operational progress in its first quarter 2026 results, supported by gas production revenues, fresh financing and expansion activities across Europe.
The company generated gas sales revenue of approximately £912,000 from the Selva Malvezzi project in Italy during the quarter, while cash reserves increased significantly to £907,000 from just £42,000 in the previous quarter.
The improvement in liquidity followed the successful issuance of a £2 million Convertible Loan Note, which exceeded the company’s original fundraising target by 25%.
Operationally, Prospex confirmed the restart of production at the El Romeral Gas Power Plant, an important milestone for its Spanish energy operations.
The company also continued expanding its footprint in Poland after securing new onshore licences, strengthening its position within the European natural gas sector.
Prospex also highlighted the appointment of a new chief executive officer as part of its broader strategic development plans.
Tom Reynolds, Chief Executive Officer of Prospex Energy PLC, said the first quarter of 2026 marked an important transitional period for the company following his appointment as CEO, allowing management to reassess priorities and reposition the business for long-term growth.
Reynolds highlighted the successful £2 million Convertible Loan Note financing completed during the quarter, noting that the fundraising exceeded its original target by 25%.
According to Reynolds, the additional capital enabled Prospex to continue investing across its portfolio, including funding seismic processing work at the Selva Malvezzi licence in Italy during a period of continued strength in European gas prices.
He added that the company entered the second quarter of 2026 with sufficient cash resources to support newly awarded licences in Poland and advance early-stage prospectivity studies on the acreage.
Reynolds also noted that strong gas revenues from Italy are expected to further strengthen the company’s cash position as elevated European gas prices continue supporting income generation.
Looking ahead, he described the second quarter as a period of consolidation, with management focused on strategic planning, future investment preparation and wider corporate development opportunities across the portfolio.
The CEO added that activity across the company’s assets is expected to increasingly converge towards the end of 2026, with larger capital expenditure requirements anticipated during 2027.
Prospex said it will continue evaluating a range of funding options to support future development while seeking to minimise shareholder dilution where possible.
