Prospex raises £1.03m via placing, opens £500k retail offer to boost European gas operations
() , an investor in European gas and power projects, announced a retail offer to raise up to £500,000 through the issue of c. 11.1 million new ordinary shares at 4.5p via the Winterflood Retail Access Platform (WRAP). The offer is open until 4:30 PM on June 27, 2025.
Additionally, Prospex said it has raised £1,031,650 by way of an oversubscribed placing via an accelerated bookbuild at the same 4.5p/share price. The issue price represents a discount of 4.4% to yesterday's closing price.
Assuming the WRAP offer is fully subscribed, the combined gross proceeds from the subscription and retail offer of c. £1.5m will be used to fund the ongoing workover on 's Viura-1B well to resume production at the Viura field, and to cover the costs of ordering long-lead items for Prospex's 2026 drilling campaign.
Mark Routh, Prospex's CEO, commenting: "As a revenue-generative, debt-free company with producing onshore European gas assets, we primarily operate on a financially self-sustaining basis. However, when we are presented with strategic development opportunities that have the potential to significantly increase revenue, build market position, and realise long-term value for stakeholders, we must act.
Our acquisition of Tarba Energía in April was a compelling investment opportunity that enabled us to achieve a 100% indirect working interest in both the El Romeral asset and the Tesorillo and Ruedalabola exploration permits in southern Spain. El Romeral is expected to lead to significantly increased production revenue once the permits to drill five new wells are approved. Whilst this acquisition was funded entirely by accumulated cash reserves from our investment portfolio, it utilised cash resources that would otherwise have been committed to our existing investments to continue to unlock their significant value potential - something we remain committed to doing."
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Prospex successfully raises £1.03m through an oversubscribed placing via an accelerated bookbuild. Announced less than 12 hours ago, the placing raised nearly double its minimum target of £550k at a slight discount of 4.4% to yesterday's closing price. Concurrently, announced a retail offer via WRAP targeting £500k to let retail investors participate as well.
The proceeds will go toward the workover of 's Viura-1B development well at the Viura field in northern Spain, aiming to return it to production as quickly as possible. While Prospex has strong cash generation, it used its cash balance in April 2025 to acquire 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.
Therefore, the placing and retail offer will provide a nice boost to the balance sheet of the company, which is rapidly advancing three high-value producing assets onshore Europe - Viura and El Romeral in Spain, and Selva in Italy. The Viura field became Prospex's 3rd European asset following its acquisition of 7.5% of Heyco Energy Iberia in August 2024. Heyco, which currently has a 58.8% interest in the Viura field, participated in the placing with 4.5m shares worth £202.5m.
The Viura-1B well is expected to resume regular production following its workover, necessitated after a leak was identified in April 2025. Initial flowrates from Viura-1B were excellent at up to 500,000 scm/d. Following 's acquisition of Viura, £903k was invested in FY25 for 2 more wells - the Viura-3A and Viura-3B, targeted to spud in 2026. Currently, the gas field has estimated gross remaining reserves of 90 Bcf (6.5 Bcf net to ).
Viura and El Romeral are two of three onshore gas fields in Spain, making Prospex a leading gas producer in the country following the aforementioned full acquisition of Tarba and partial acquisition in Heyco Energy Iberia. is waiting on permits for 5 new wells on the El Romeral concession to boost production to 8.2MW, expected in Q4 2025.
Prospex's third European asset is the Selva field in northern Italy where continues to see strong production and revenues, with gross gas production in FY24 totalling 10.2 million scm net to , and gross revenue reaching €3.8m net to . In Q3 2024, filed applications for 4 new wells on the Selva concession. We expect production from the new wells to commence within a year.
Looking ahead, the acquisitions of Tarba Energia and Viura should support significant growth. In total, investors can expect 11 new wells across the 3 concessions to come online within the next 24 months, pending permits. With the proceeds from the placing and retail offer, together with strong ongoing production revenues, should be able to cover the development costs of the new wells, while continuing to maintain a debt-free balance sheet.
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