Prospex

Constructing a portfolio of high growth energy investments in Europe, providing curated access to energy production supported by favourable macro economic tailwinds.

Prospex’s strategy is to identify and invest in European energy assets which have a clear path to absolute value growth. Prospex will invest across the hydrocarbon asset lifecycle from exploration to production provided it can see returns which significantly exceed its cost of capital.

Using the team’s network, technical and commercial expertise, the Company will pursue investments which offer a clear path to cashflow.

The Company will leverage internal cashflow, industrial partners and financial co-investors to fund growth capex and maximise value on a per share basis.

Investment Case

Prospex is one of the few UK publicly traded investing companies offering exposure to onshore European gas markets, providing investors with the following investment positives:

• Real assets – properties which produce real commodities needed by society and will both hold and increase in value during inflationary periods, outperforming other investment classes when buying power is eroded.

• Energy sovereignty – as established (often imported) supply chains for energy delivery to Europe fail or are disrupted, energy resources within Europe are recognised as strategically more valuable and asset prices are revalued.

• Value accretive – each asset has an identified pathway to add value through discovery, derisking and development. With access to appropriate resources, Prospex can add value for shareholders.

As an investment company, Prospex has broad flexibility in terms of investment structures, who it can partner with and the targets it invests in, giving it a significant competitive advantage.

Prospex’s medium-term objective is to establish a portfolio of cash flowing assets capable of offering distributions and/or funding investment opportunities, compounding investor value over multiple investment cycles

At each stage, every investment will be assessed rigorously against value added per Prospex share

Investment Criteria

  1. Regions with working petroleum systems

  2. Favourable fiscal regimes with low political risk

  3. Resource materiality – scale for acquirers and returns for shareholders

  4. Scope for technology to unlock latent value

  5. Line of sight catalysts for value re-rating

  6. Clear monetisation opportunity after value creation