Prospex to Restart El Romeral Output as New Wells Near Permit Clearance

Prospex Oil and Gas ( (GB:PXEN) ) has provided an announcement.

Prospex Energy has secured a rental transformer for its El Romeral gas-to-power plant in southern Spain, allowing electricity generation and sales to resume by the end of January 2026 after a prolonged outage linked to the failure of a previous rental arrangement. To obtain the new unit, Tarba waived a €76,000 compensation claim for lost production against the former rental supplier, prioritising a rapid restart to monetise remaining gas reserves by targeting high-priced overnight hours in Spain’s increasingly volatile spot power market; this should restore cash flow from an asset the company describes as having substantial development potential. In parallel, permitting is in the final stages for five new low-risk natural gas wells on the El Romeral concessions, which together hold more than 90 bcf of gas resources; just two of the planned wells could fill the plant to full capacity, with additional gas potentially underpinning future plant expansion and direct gas sales to the grid, thereby strengthening Prospex’s growth profile and role as a hybrid gas-and-solar power provider in Europe’s energy transition.

The most recent analyst rating on (GB:PXEN) stock is a Sell with a £3.00 price target. To see the full list of analyst forecasts on Prospex Oil and Gas stock, see the GB:PXEN Stock Forecast page.

Spark’s Take on GB:PXEN Stock

According to Spark, TipRanks’ AI Analyst, GB:PXEN is a Neutral.

The score is held down primarily by weak financial fundamentals—persistent operating losses and multi-year negative operating/free cash flow—despite a relatively low-debt balance sheet. Technicals also lean negative with the price below key moving averages and a negative MACD, while valuation is pressured by a very high P/E and no reported dividend yield.

To see Spark’s full report on GB:PXEN stock, click here.

More about Prospex Oil and Gas

Prospex Energy is an AIM-quoted investment company focused on high-impact onshore and shallow offshore European gas and power opportunities with short timelines to production. Through its wholly owned subsidiary Tarba Energía, the company owns 100% of the El Romeral gas and power project in Andalucía, Spain, where biogenic natural gas feeds an 8.1 MW power plant that sells electricity into the Spanish spot market. Prospex’s strategy is to acquire undervalued assets with near-term value triggers, rapidly scale up gas production to generate internal revenues, and support Europe’s energy transition with lower-carbon domestic gas combined with solar generation.

Average Trading Volume: 1,138,637

Technical Sentiment Signal: Sell

Current Market Cap: £12.86M

For an in-depth examination of PXEN stock, go to TipRanks’ Overview page.