Prospex Energy completes EIA consultation for El Romeral gas wells

Prospex Energy PLC (AIM:PXEN) has completed the Environmental Impact Assessment (EIA) consultation for drilling five new natural gas wells at its El Romeral concessions in Spain, submitting full documentation to the Ministry for Ecological Transition after receiving no objections from 29 statutory consultees. The Ministry now has 90-180 days for final review, potentially leading to permit approval for wells targeting 18.2 billion cubic feet (bcf) of contingent and prospective gas resources, part of an identified 90 bcf total. Separately, the company ordered a new electricity transformer for the El Romeral power plant, with delivery expected in H1 2026, as current electricity production remains suspended, though the CEO anticipates full plant output from just two new wells.

Analysis

Prospex Energy PLC (AIM:PXEN) has successfully completed the Environmental Impact Assessment (EIA) consultation for drilling five new natural gas wells at its El Romeral concessions in Spain. The company submitted full EIA documentation to the Ministry for Ecological Transition on November 14, following a consultation process that yielded no objections from 29 statutory consultees. These wells target 18.2 billion cubic feet (bcf) of best estimate contingent and prospective gas resources, contributing to an identified resource base of over 90 bcf within the concessions.

The Ministry now has a 90-to-180-day window to complete its final review, which could lead to a ministerial resolution approving the well permits. In parallel, Prospex's subsidiary Tarba Energía S.L. has advanced drilling preparatory work, including detailed well design and sourcing long-lead items. This proactive operational progress mitigates potential delays once regulatory approval is secured.

Separately, the company reported ordering a new electricity transformer for the El Romeral power plant, with delivery and installation anticipated in the first half of 2026, during which electricity production remains suspended. CEO Mark Routh projects that the power plant will achieve full output capacity from the production of just two of the proposed five wells, with additional gas supporting expansion and potential grid supply. This indicates significant future production capacity relative to current infrastructure needs.

Key Decisions for Investors

• Monitor the Ministry's final review timeline (90-180 days) for well permit approval, as this is the critical near-term catalyst for PXEN's El Romeral project.
• Evaluate the impact of the H1 2026 transformer installation on the El Romeral power plant's operational restart and subsequent revenue generation, considering the current suspension of electricity production.
• Assess the company's ability to capitalize on the significant 90 bcf identified resource base and CEO's projected full plant output from only two wells, which could drive substantial long-term value.