REG - Prospex Energy PLC - Completion of Convertible Loan Notes Fundraise

Prospex EnergyAnnouncement

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RNS Number : 3324P  Prospex Energy PLC  19 January 2026

Prospex Energy PLC / Index: AIM / Epic: PXEN / Sector: Oil and Gas

 

19 January 2026

 

Prospex Energy PLC

('Prospex' or the 'Company')

 

Completion of Convertible Loan Notes Fundraise

 

Prospex Energy PLC (AIM: PXEN), the AIM-quoted investment company focused on
European gas and power projects, is pleased to announce that it is now in
receipt of committed subscriptions totalling £1,346,050 for the offering of
its unsecured Convertible Loan Notes.

 

Highlights

·    Committed subscriptions of £1,346,050 (including the £985,000
previously announced on 12 January 2026) for the Company's offering of
unsecured Convertible Loan Notes of £1 each, due at the end of June 2028 (the
"Loan Notes").

·    The proceeds from the Loan Notes have already funded the Company's
37% share of the 3D‑seismic acquisition programme at the Selva Malvezzi
production concession in Italy which will enable the next stage of the
development of the asset which has major potential for the Company.

·    The Loan Notes are convertible at 3p per ordinary share at any time
at the election of the investor.

·    Interest of 12% per annum is payable quarterly, with the first two
interest payments on 31 March 2026 and 30 June 2026 to be capitalised and
added to the loan principal rather than paid in cash.

·    Loan principal to be repaid in three tranches at the end of December
2027, the end of March 2028 and the end of June 2028.

o  Forecast increased gas production from the drilling campaigns on all three
of the Company's production concessions is expected to cover the capital
repayments.

·    Net proceeds will be used to support the Company's ongoing
activities, including current and future capital expenditure requirements.

·    Ongoing operational costs and overheads continue to be met from
production income generated by the Company's strategic asset portfolio.

 

Mark Routh, Prospex's CEO, commented:

"The Board of Prospex is very grateful for the support from investors for the
Loan Note offering.  The proceeds from the Loan Notes have already funded the
Company's 37% share of the 3D-seismic acquisition programme at the Selva
Malvezzi production concession in Italy, which was successfully completed by
the operator last month.

 

"The Company enters 2026 with its ongoing commitments fully covered, securing
its interests across its production and development concessions."

 

Use of Funds and Structure

The funds raised from the issue of the Loan Notes will fund the ongoing growth
of the Company and its current and future capital expenditures.  Ongoing
operational expenditures and overheads are currently covered from production
income from the Company's portfolio of assets.

Selva Malvezzi

£800,000 of the net proceeds of the Loan Notes have been used to fund the
Company's 37% share of development costs in respect of the 3D-seismic
acquisition programme, which was completed last month at the Selva Malvezzi
concession, in the Po Valley in Italy.  The Company is now up to date with
its obligations in the Selva Malvezzi Joint Venture.

Viura

£200,000 of the Loan Notes already issued in December 2025 settled the
balance of the June 2025 cash-call on Viura in northern Spain, which was not
fulfilled in cash by the Company at that time.  In order to assist the
Company, HEYCO Energy Group, Inc. agreed that this £200,000 was converted
into the Loan Notes.

Tarba - El Romeral

A total of £300,000 of the net proceeds is anticipated to be used for a new
transformer at the El Romeral power plant in Carmona southern Spain, due for
delivery in approximately 6 months, with a final payment of £235,000 due.
The transformer was ordered in November 2025 and a 20% deposit of £65,000 has
already been paid.

 

Further Loan Note Subscriptions from the Directors of the Company

In addition to the £25,000 already subscribed on 19 December 2025, Alasdair
Buchanan has subscribed an additional £1,800 in cash.  In addition to the
£20,000 already subscribed on 19 December 2025, Andrew Hay has subscribed an
additional £6,250 in cash.

 

Related Party Transaction

The additional committed subscriptions by these directors for the Loan Notes
constitute related party transactions under the AIM Rules.  Due to the
previous participation by all of the directors in the Loan Notes, there is not
a director, or directors, independent of the issue of the Loan Notes to
provide the necessary AIM Rule 13 related party transaction opinion.
Accordingly, Strand Hanson Limited, the Company's Nominated Adviser, confirms
it is satisfied that the terms of these subscriptions by Alasdair Buchanan and
Andrew Hay are fair and reasonable insofar as the Company's shareholders are
concerned.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

 

* * ENDS * *

 

For further information visit www.prospex.energy (http://www.prospex.energy)
or contact the following:

 

 William Smith                     Prospex Energy PLC            Tel: +44 (0) 20 7236 1177
 Ritchie Balmer                    Strand Hanson Limited         Tel: +44 (0) 20 7409 3494

Rory Murphy
 Andrew Monk (Corporate Broking)   VSA Capital Limited           Tel: +44 (0) 7469 152 119

Andrew Raca (Corporate Finance)
 Neil Passmore                     Hannam & Partners             Tel: +44 (0) 20 7907 8500

 Leif Powis
 Ana Ribeiro / Charlotte Page      St Brides Partners Limited    Tel: +44 (0) 20 7236 1177

 

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