Prospex Energy to acquire 100% of Tarba Energía, expanding stake in Spanish gas assets

 () , an investor in European gas and power projects, announced it will acquire the remaining shares in Tarba Energia from Warrego Energy, increasing 's stake to 100%. Tarba currently holds Prospex's 49.9% interest in the El Romeral production concessions and associated gas power plant in southern Spain.

Upon completion of the transaction,  will own a 100% indirect working interest in both the El Romeral gas asset in Carmona, as well as the Tesorillo and Ruedalabola exploration permits in Candiz. The total consideration for the remaining Tarba shares is €653k. The acquisition will be funded entirely from 's existing cash reserves.

Gross gas production at El Romeral averaged 18,000 scm/d in 4Q24. The power plant is currently operating at 30% capacity (2.7 MW) from its 3 natural gas wells, as Tarba waits on permits to drill 5 further infill wells on the concessions to increase output. Only 2 of the 5 are needed for the power plant to reach its full 8.2 MW capacity.

Mark Routh, CEO of Prospex, commenting: "I am extremely pleased to announce the increased ownership in Tarba, the El Romeral concessions and the related gas-to-power plant in Carmona. Importantly the acquisition is being made using accumulated cash reserves from our investment portfolio and is expected to lead to significantly increased production revenue once the permits to drill the five new wells on the El Romeral concessions are approved."

View from Vox

Prospex Energy has announced the full acquisition of Tarba Energia, raising its stake in the El Romeral concessions and gas power plant in southern Spain from 49.9% to 100%, while also gaining full ownership of the Tesorillo and Ruedalabola exploration permits in Cadiz.

The El Romeral concessions hold an estimated 90 bcf (gross unrisked mid-case) across 11 mapped low-risk prospects. The total acquisition price of €653k for 50.1% of the 90 bcf resource translates to US$0.016/mcf or US$0.092/boe, which is highly competitive. There is significant upside as 5 new wells are being advanced on the concession, with further mapped structures ready to evaluate and drill.

Last year, Tarba secured a 10-year extension to the El Romeral concessions until July 2034. The new wells target 5 optimum structures on the concessions, which will produce biogenic gas from shallow subsurface horizons. The wells will average c. 700m in depth, and should each take 3-4 weeks to drill once a rig has been mobilised. If approvals proceed as planned, drilling could begin in late 2025 or early 2026.

In FY23, El Romeral generated gross revenues of €1.8m, supplying enough electricity to cover c. 6,700 homes in the area, while operating at 1/3rd capacity. With the future wells, the plant should reach its nameplate capacity of 8.2 MW and cover over 20,000 homes. Only 2 of the 5 planned wells are required for this, with the rest and any future wells supporting expansion plans at the power plant and direct gas export to the Spanish grid.

By focusing on biogenic gas, Prospex is positioning itself as a lower-carbon alternative in the gas sector. Natural gas remains a crucial transitional fuel in Europe's energy mix, particularly as the continent seeks to reduce reliance on Russian imports. Domestic production from onshore wells like El Romeral provides energy security benefits while minimising emissions from LNG transport.

Overall, the deal highlights the increasing momentum of 's European energy strategy. El Romeral currently represents 10% of 's net gas production, with 55% coming from the Viura asset in northern Spain, and 35% from the Selva Malvezzi concession in northern Italy. Following the acquisition of Tarba, El Romeral's contribution will increase to 20%.

 remains cash generative, with no debt, and well-positioned for further growth.

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