GCIProspex Energy posts strong H1 2024: debt cleared, portfolio expansion in Spain and Italy
() , an investor in European gas and power projects, announced its interim results for the 6 months ended June 30, 2024.
During the period, Prospex repaid all interest-bearing debt plus accrued interest, with no further debt-finance raised since. Loss after tax narrowed significantly to £275k from £888k LY. This includes zero unrealised P/L on revaluation of 's financial assets at fair value, compared to an unrealised loss of £489k in H1 2023.
Valuation undertaken at June 30, 2024 resulted in no change in the net book value of 's investments, taking into account forward gas prices and exchange rates on the date. After settling all debt and interest, had £11k in cash at period-end while its net share of cash eq held in EUR in non-consolidated investments and JVs was €795k.
Post-period, acquired 7.23% interest in the Viura gas field in northern Spain, its third onshore asset in Europe. raised £4.2m at 6p to acquire 7.5% of Heyco Energy Iberia, which has majority ownership in Viura. To earn the 7.5% interest, Prospex is funding 15% of development costs at Viura, in return earning a 10% coupon and 15% of production income until its capital investment is repaid.
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An eventful YTD for Prospex as the gas producer settled all debts and acquired 7.23% interest in its third European asset - the Viura gas field onshore in northern Spain. was already present in Spain through its El Romeral gas facility whose license was recently extended until 2034.
At Viura, a development well Viura 1B is being drilled currently, with two additional wells scheduled for 2025 and 2026. Viura has significant remaining 2P reserves of 90 Bcf (2.5 Bcm), which will materially boost 's booked gas reserves, gas production, and cashflow in the very near term, with significant estimated upside.
Viura is one of 3 onshore gas fields in Spain. El Romeral, where Prospex has a 49.9% interest, is another, making Prospex now a leading gas producer in Spain. Five new wells on the El Romeral concessions are currently advancing through the permitting process in order to bring production at the gas-to-power plant to nameplate capacity (currently at 33%).
Meanwhile at 's third producing asset, the Selva Malvezzi concession in northern Italy, four more wells are being advanced following acquisition of a 3D seismic survey. As production ramped up at Selva in early FY24, revenues continued to climb in H1, reaching €2.6m net to as of May 24, 2024 compared to a total €1.3m generated in FY23. recently extended Selva's gas supply contract with BP Gas Marketing by another 12 months.
Additionally, the recent annulment of Italy's 'Plan of Areas', which had previously limited the extent of hydrocarbon exploration and production, represents further potential upside at Selva and future assets within the country.
Given all aforementioned active development across Prospex's three 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. remains cash generative, with no debt, and well-positioned for further growth.
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