Prospex Energy is an oil investment firm based in the UK. The firm is developing an investment portfolio with a focus on late-stage onshore oil production.

Overview

Prospex Energy Plc is an oil and gas investment firm established in the United Kingdom. The firm is developing an investment portfolio with a focus on late-stage onshore European potential for the production of gas and electricity.

Financials

The company recorded total assets of £8.98m for the fiscal year that concluded on December 31, 2021, compared to £5.75m in 2020. The revaluation reflecting precise recognition of advantageous changes in the forward curve of European gas prices, as well as repayments and advances on loans receivable from investments, account for the majority of the 56% gain. Unrealised gains totalled £3.07m (unrealised loss: £1.12m for 2020). Due to management's efforts to lower the company's cost base, administrative costs for the entire year came to £891,676, an 8% decrease from 2020's £972,193. The firm has cash and cash equivalents of £220,060 as of December 31, 2021, up from £220,618 in 2020. Moreover, in contrast to a loss of £1,806,492 in 2020, continuing operations generated a net profit of £2,259,796. Finally, By issuing 70,137,143 additional 0.1p ordinary shares at a price of 3.50 pence each in February 2022, the firm was able to raise £2.455 million (before expenses). The company's stake in the Selva Field in Italy has increased from 17% to 37% as a result of the completion of the acquisition of 20% of the field (selva is the onshore gas field in northern Italy).

Technicals

From a technical outlook, Prospex’s shares are currently trading at around 14.22p a share. We can see that from the 25^th of July, 2022, the trend has been bullish (positive) with support along the trendline (green). At present on the weekly timeframe, the first support level sits at 13.75p, a break and close below this level could see a test of support at 11.25p (upper dotted trendline) followed by 9.25p (lower dotted trendline). On the other hand, if the pattern continues, resistance sits at 15.62p then at 16.50p then at 19.25. A break above 19.25 may see the price climb back up to 20.70 (last seen in the week beginning 13^th of February, 2023). Looking at the technical indicators, MACD is heading towards a negative stance but RSI is positive as it reads 59, although faltering. RSI may be faltering because it suggested that the stock was ‘overbought’ for a period of time. Hence, this could be a short-term dip before a potential bounce higher.