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(Sharecast News) - Prospex Energy reported a year-to-date increase in investment activity on Monday, and said its full-year share of gross sales remained on track to exceed 2024 levels, despite lower group cash balances following substantial reinvestment into its European gas and power portfolio.
The AIM-traded company invested 3.76m in the first nine months of 2025, of which 70% was funded from internal resources and the remainder from a 1.12m net equity raise completed in the third quarter.
Cash and near-cash held by the group, excluding the Viura joint venture, fell to 0.38m at 30 September from 1.96m at the start of the year, reflecting the increased outlay.
Prospex's share of gross sales for the year to date totalled 4.23m, putting the group on course to surpass the 4.33m recorded for full-year 2024.
The update showed third-quarter investment additions of 1.33m, including 1.14m injected into the Viura gas field and further investment in Tarba Energa.
Earlier in the year, Prospex acquired the remaining shares in Tarba, securing full ownership of the El Romeral power plant and associated production concessions in Spain, along with the Tesorillo and Ruedalabola exploration licences.
The firm said the environmental impact assessment for five new wells at El Romeral was now with the central ministry in Madrid for final approval.
Additional capital had also been deployed into Heyco Energy Iberia, operator of the Viura field, where Prospex holds a 7.5% stake.
Production at Viura was halted in the second and third quarters due to a workover programme but resumed in October.
The Selva Malvezzi concession in northern Italy continued to generate steady output and cash flow, with a new gas sales contract agreed in the third quarter and permitting for four additional wells progressing alongside ongoing 3D seismic acquisition.
"I am pleased to share the unaudited group financial indicators for the first three quarters of 2025 which show the significant steps made in re-investing production income during the year," said chief executive Mark Routh.
"In the year-to-date ended 30 September 2025, the company raised a net 1.12m via equity and utilised a further 2.65m of the group's internal funds to invest a total of 3.76m in growing the group's assets."
He added that the acquisition of Tarba had given Prospex full ownership of the El Romeral assets and that "substantial further investments have been made in Heyco Energy Iberia," which owns the Viura field.
Routh said expansion plans in Italy and Poland were advancing, noting that licence applications in Poland were under way.
"It is satisfying to be delivering on the strategy of growing the company's portfolio of gas reserves to deliver natural gas into the European energy markets where demand is strong and continues to increase," he said.
Routh reiterated that capital expenditure over the next two to three years was expected to be financed through a mix of farm-downs, debt, internal funds and equity as needed, adding that Prospex "remains one of the few UK-listed companies offering investors direct exposure to onshore European gas markets."
At 1209 GMT, shares in Prospex Energy were down 11.54% at 3,45p.
Reporting by Josh White for Sharecast.com.