Prospex Energy (PXEN) Investor Update summary

Operational update and asset status

• Viura gas field in Spain remains shut in due to a blockage, with production expected to resume after coil-tubing equipment arrives from Poland in mid-August or earlier if current remediation succeeds; Viura-1B produced 30.2 MMscm from December 2024 to Q1-2025, with 4.4 MMscm net to Prospex.

• Selva Malvezzi in Italy continues steady production, averaging 79,783 scm/d in Q2-2025 with 2.686 MMscm net to Prospex and €1.06 million net revenue; future drilling delayed due to permit resubmission after flooding, with EIA revisions and new well programs underway.

• El Romeral in Spain is temporarily offline since 1 July 2025 due to transformer issues, with compensation for lost production increased to nearly €4,000/day and a new transformer expected in August.

• Portfolio includes significant proven, contingent, and prospective gas resources across three main assets, with additional license applications in Poland for 100% working interest in gas blocks and a suspended exploration project in southern Spain.

Financial position and shareholder communication

• Management and board hold nearly 9.5% of shares and are focused on improving communication and transparency, with plans for quarterly operational and selected unaudited financial updates, including cash position.

• Cash generated in subsidiaries is often retained for future operations and not all is accessible at the parent level.

• No imminent capital raise planned, but future funding may be required for growth and unexpected costs.

Investment strategy and outlook

• Focus remains on onshore European natural gas assets, targeting undervalued projects with rapid value triggers and low-cost re-evaluation to de-risk prospects; investments are only pursued if accretive to shareholder value.

• Selva Malvezzi is considered a highly successful investment due to stable production and cash flow.

• Viura acquisition increased proven (2P) reserves by 6.5 Bcf net, with gross 2P remaining reserves at 90 Bcf and significant future revenue potential once production resumes and new wells are drilled.

• Delays in production and permitting have shifted CapEx plans, allowing for cash accrual and potential debt financing for future wells.

• Commitment to scaling up gas production to generate internal revenues for further asset development.