Prospex Energy (PXEN) Investor Update summary

Asset portfolio and operations update

• Operating assets in northern Italy (Selva Malvezzi), southern Spain (El Romeral), and northern Spain (Viura), with expansion into Poland underway.

• Selva Malvezzi is producing around 80,000 m3/day, with four new wells planned and a limited 3D seismic campaign scheduled for year-end.

• Viura field farm-in provides a 7.5% interest, with 15% of revenues from current wells and a payback mechanism; drilling is ongoing with positive gas shows and potential for significant resource upgrades.

• El Romeral is producing at 33% capacity due to gas supply limits; permitting for five new wells is in progress, which could triple output once approved.

• Tesorillo in southern Spain holds large prospective resources, with plans to convert the exploration permit to exploitation and drill a new well.

Expansion and funding strategy

• Expansion into Poland with applications for two onshore gas license areas, aiming for awards in Q1/Q2 2025 and a long-term exploration and drilling program.

• All current activities and expansion efforts are funded from existing production income, primarily from Selva Malvezzi.

• Future drilling campaigns in Spain and Italy are planned for 2025, contingent on permitting and production income; equity raises and alternative financing are considered if needed.

• Recent equity raise at 6p/share was cornerstone-funded by Heyco Energy, which also farmed down a stake in Viura; debt finance is challenging due to market and sector constraints.

• Production income from Viura, once online, is expected to fund further drilling and expansion, with a focus on minimizing shareholder dilution.

Market outlook and shareholder engagement

• Gas remains a strategic focus due to ongoing European demand and energy security concerns, with local production favored over imports.

• Regulatory environments in Italy and Poland are improving, supporting investment and permitting processes.

• Management is committed to growing the company, reinvesting income, and maximizing shareholder value, with potential for dividends in the future.

• Extensive news flow expected in coming months as permitting and drilling progress across three countries.

• Active communication with shareholders and ongoing evaluation of funding options to support growth and value creation.