Prospex Energy (PXEN) Investor Update summary

Operational update and asset status

• Viura field production is temporarily halted due to a tubing leak in the main well, with repairs and workover scheduled for June; production is expected to resume mid-June.

• Water ingress issues in Viura are being addressed by plugging slotted liners and recompleting wells to isolate water-producing zones.

• El Romeral asset in Spain is producing electricity from gas, with five new wells awaiting permits expected by year-end; full capacity requires only two successful wells.

• Selva Malvezzi in Italy continues steady production, with four additional wells in the permitting process and 3D seismic work planned for late summer.

• Poland license applications are progressing, with further ministry questions expected and a possible award process extending into autumn.

Financial position and funding

• The company is debt-free, with no outstanding warrants, and covers overheads from production income.

• Repairs and upcoming drilling are expected to be funded from existing production income, with no immediate need to raise capital, though precise costs are pending.

• Debt financing for Viura's next phase is contingent on stable production and a new reserve report, with a syndicate of banks involved.

• Farm-in offers for El Romeral could provide alternative funding for drilling if needed.

• Gross revenue from current production is estimated at €850,000 per month, before deductions for fees, taxes, and overheads.

Technical and strategic developments

• Operator HEYCO Energy is regarded as highly competent, with access to advanced technologies and a strong technical team.

• 3D seismic reprocessing at Viura aims to optimize future well locations, contributing to drilling delays but expected to improve outcomes.

• A new Competent Person’s Report (CPR) for Viura will be commissioned after seismic reprocessing, potentially increasing proven reserves.

• The company is open to organic growth and selective farm-downs but aims to avoid dilutive equity raises.

• Learnings from operational setbacks are being shared internally to improve future asset management.