Prospex Energy plc’s swing to a loss has failed to dent its optimism with the start of gas production in the Po Valley and approvals pending for more wells in Italy and Spain.
FINANCES
Half-year results to 30 June showed £888,473 loss after taxation from operations (H1 2022: profit £5,120,408).
The figures includes unrealised losses of £489,037 (H1 2022: gain £7,645,980) from revaluation of Prospex’s share in its subsidiary PXOG Marshall Ltd which holds assets in the Podere Gallina licence.
The revaluation gain for the same period last year was attributable to the revaluation of the 20% working interest, added to the 17% already held, in the Selva Malvezzi production concession.
The revaluation at 30 June 2023 resulted in a reduction in the net book value of investments to £15,575,603 (31 December 2022: £16,064,640).
Prospex cited causes as the decline in European gas prices and a weaker Euro to Sterling exchange rate.
Administrative expenses amounted to £461,322 (H1 2022: £501,967) while cash and cash equivalents were £395,202 (H1 2022: £181,628).
The company which was already producing gas from El Romeral in Carmona has, post-period, started selling gas from the Selva field in Italy.
FURTHER WELLS
“During the first half of 2023, Prospex laid the groundwork for the company to become an onshore gas producer in its second European country,” said chief executive officer Mark Routh.
“Being a gas producer from two assets in stable countries puts Prospex on a sound footing both operationally and financially to enable further growth opportunities to be evaluated.
“The El Romeral power plant in Carmona is already a significant producer of gas for electricity generation in southern Spain with the ability to increase this further once the necessary permits to drill further [five] wells are granted.
“We also have the opportunity to develop our assets on the Selva Malvezzi production concession near Bologna in Italy and the joint venture is actively pursuing the necessary steps to drill at least three further wells on the concession to boost our proven developed producing reserves.”
The company added its operations in Spain and Italy had experienced no health and safety events, lost time injuries or any reportable environmental issues.