Prospex Energy (PXEN) Investor Update summary

Operational update

• Viura gas field in Spain remains shut due to a blockage, with production expected to resume after coil-tubing equipment arrives from Poland in mid-August or earlier if current clearing efforts succeed.

• Leak in Viura-1B well production tubing was repaired, but residual drilling mud blockage delayed restart; wireline methods ongoing but less effective than coil-tubing.

• 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 at €0.39/scm; future drilling delayed due to permit resubmission after flooding.

• El Romeral in Spain is 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.

• Applications for new licenses in Poland are progressing, with public gazetting expected in the coming months and work program details pending.

Financial and strategic outlook

• Management and board hold a significant shareholding, aligning interests with shareholders and focusing on communication improvements.

• Quarterly operational and selected unaudited financial updates will be provided to enhance transparency.

• Cash flow from operations now covers overheads, but additional capital may be needed for growth and unexpected costs.

• Share buybacks are not planned in the short to medium term, with focus remaining on asset and production growth.

• Dividend payments are not possible while subsidiaries report losses, but will be considered when profitable.

Asset performance and shareholder value

• Selva Malvezzi is highlighted as a stable, successful investment with consistent cash flow.

• Viura acquisition increased proven (2P) reserves by 6.5 Bcf net, with gross 2P remaining reserves at 90 Bcf and 14.47% of production income accruing until capital payback plus 10% p.a. interest.

• Delays in production have shifted drilling schedules, but allow for cash accrual and potential debt financing for future wells.

• Management believes the company is materially undervalued and is committed to unlocking value through operational progress.

• Focus remains on onshore European gas projects with short timelines to production and value creation.