Prospex Energy, the AIM quoted investing company focused on European gas and power projects, announces that on 15 April 2025, its wholly owned subsidiary, PXOG Muirhill completed the acquisition of Tarba Energía through the purchase of the entire shareholding held by Warrego Energy in Tarba. Tarba is the company through which Prospex holds its interest in the El Romeral production concessions and the associated El Romeral gas-to-power plant situated near Carmona in southern Spain. Tarba also holds the Tesorillo and Ruedalabola exploration permits located in the Cadiz province of southern Spain. 

Highlights

• Prospex now owns a 100% indirect working interest in both the El Romeral asset and the Tesorillo and Ruedalabola exploration permits.
• Under the terms of the Acquisition, Muirhill shall pay to Warrego a total consideration of €662,725, of which €100,000 is payable upon securing drilling permits.
• The Acquisition has been funded entirely by the Company's existing capital resources.
• Competitive acquisition price equating to US$0.016/mcf or US$0.092/Boe.
• Potential to significantly increase production and revenues on the El Romeral concession once the permits to drill the five new wells are approved.
• New senior member of staff appointed to the Company's executive management team as Chief Operating Officer - already a shareholder of the Company, having supported the Company in funding rounds.
• No objections received from the public and statutory consultees on the Environmental Impact Assessment to drill the five wells on the El Romeral concessions.
• This transaction delivers on the strategy of increasing the Company's investments in European gas and specifically gas production.

Mark Routh, Prospex's CEO, commented:
"I am extremely pleased to announce the completion of our acquisition of Tarba, which includes the El Romeral production concessions and the related gas-to-power plant in Carmona. Importantly, the acquisition was funded entirely by 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.

"As announced in the RNS of 16 March 2025, the prospective gas resources Prospex has acquired in the El Romeral asset alone, is at an equivalent price of US$0.092/Boe. This acquisition delivers on the Company's strategy to acquire undervalued projects with multiple, tangible value trigger points that can be realised within 12 months of acquisition. Prospex sees further upside in the concessions with further mapped structures to evaluate and drill once the first five wells have been permitted and drilled.

"I am also pleased to announce the appointment of Richard Jameson as Chief Operating Officer of Prospex Energy, a senior and highly qualified engineer with whom I have worked previously. Richard will assist the executive management team in managing our growing investment portfolio, which now includes 100% of Tarba and, subject to the award of the onshore licence block applications, will expand into Poland.  Significantly, Richard is an existing shareholder in Prospex having participated in funding the company since July 2022, owning 9,757,666 shares, approximately 2.42% of the Company."

Viura Project Drilling Schedule Update

Further to the operational update RNS of 8 April 2025, Prospex has been informed by HEYCO Energy, the operator of the gas field in northern Spain, of its decision to wait for the completion of the 3D seismic reprocessing project and the reinterpretation of that new data, before it starts the drilling programme on site. This data driven approach will increase the operator's chance of success and further optimise the subsurface well targets of the future wells. HEYCO  is also working on optimising the production from the recently drilled Viura-1B well including managing its water production. Establishing stable rates from the field will facilitate negotiations with the banking syndicates for project financing. As such, drilling operations on the Viura project are not expected to commence before 1 July 2025.

Appointment of Chief Operating Officer

The Company is pleased to announce the appointment of Mr Richard Jameson as the Chief Operating Officer ("COO") of Prospex Energy. Richard will also take the role of COO of Tarba to support the increased workload in the management of the assets in southern Spain. Richard will be appointed as a Director of Tarba as soon as the legal proceedings for that appointment can be concluded.  Until that point Mark Routh, the CEO of Prospex, will be the sole director of Tarba upon the resignation of Mr Dennis Donald, up until yesterday Warrego's representative on Tarba's Board of directors. Richard's role in Prospex will initially be part-time, but his role will expand as the Company continues with its growth strategy.

Richard is a highly qualified engineer with more than 40 years of experience in the industry. He is also an existing shareholder of Prospex Energy having participated in recent fund raises of the Company and acquiring further shares on the market. Richard is now the beneficial owner of 9,757,666 shares in Prospex Energy which represents 2.42% of the current issued share capital.

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