Already all the benefits derivable from the gallant capture of Barcelona had been lost. The enemy had recovered from the surprise and dismay excited by that event. The friendly and wavering, who would at once have risen had the king boldly advanced after his striking success, had already lost heart and become dispirited by the want of energy displayed in his after proceedings, and from all parts of Spain masses of troops were moving to crush the allies and stamp out the insurrection.

In Valencia only had the partisans of Charles gained considerable advantages. In the beginning of December Colonel Nebot, commanding a regiment of Philip's dragoons, declared for Charles, and, accompanied by four hundred of his men, entered the town of Denia, where the people and Basset, the governor, at once declared for Charles.

On the 11th Nebot and Basset attacked the little town of Xabea, garrisoned by five hundred Biscayans, and carried it, and the same night took Oliva and Gandia. The next day they pushed on through Alzira, where they were joined by many of the principal inhabitants, and a detachment of the dragoons under Nebot's brother, Alexander, surprised and routed three troops of the enemy's horse, captured their convoy of ammunition, and pursued them to the very gates of Valencia.

On the night of the 15th the main body marched from Alzira, and appeared next morning before Valencia and summoned the town to surrender. The Marquis de Villa Garcia refused, but Alexander Nebot put himself at the head of his dragoons and galloped up to the gates shouting “Long live the king!” The inhabitants overpowered the guard at the gate and threw it open and Valencia was taken. When the news of these reverses reached Madrid the Conde de las Torres, a veteran officer who had seen much service in the wars of Italy, marched from Madrid in all haste to prevent if possible the junction of the forces of Catalonia with the Valencians.

He at once marched upon San Matteo, which lay on the main line of communication, and commenced a vigorous siege of that city. The king received the news on the 18th of January, 1706, and wrote at once to Peterborough, urging him to go to the relief of San Matteo, but giving him no troops whatever to assist him in his enterprise; and Peterborough's difficulties were increased by General Conyngham, who commanded a brigade at Fraga, hastily falling back upon Lerida upon hearing exaggerated rumors of the strength of the enemy.

Peterborough, however, did not hesitate a moment, but mounting his horse, and accompanied only by his aides de camp, Jack Stilwell and Lieutenant Graham, rode for Tortosa. Changing his horse at the various towns through which he passed, and riding almost night and day, he reached Tortosa on the 4th, and at once summoned the magnates of the town to give information as to the real state of things. He then found, to his astonishment, that the details which the king had sent him respecting the force of the enemy were entirely incorrect. Charles had written that they were two thousand strong, and that sixteen thousand peasants were in arms against them, whereas Las Torres had with him seven thousand good troops, and not a single peasant had taken up arms.

General Killigrew, who now commanded the two hundred dragoons and the thousand British infantry at Tortosa, together with his officers, considered that under such circumstances it was absolutely hopeless to attempt any movement for the relief of San Matteo; but Peterborough did not hesitate a moment, and only said to his officers:

“Unless I can raise that siege our affairs are desperate, and therefore capable only of desperate remedies. Be content; let me try my fortune, whether I cannot by diligence and surprise effect that which by downright force is apparently impracticable.”

The officers had unbounded confidence in their general, and although the enterprise appeared absolutely hopeless, they at once agreed to undertake it. Accordingly the three weak English regiments marched from Tortosa under Killigrew, and the next day the earl followed with the dragoons and a party of Miquelets, and overtook the infantry that night. The next morning he broke up his little army into small detachments in order that they might march more rapidly, and, dividing the Miquelets among them as guides, ordered them to assemble at Fraiguesa, two leagues from San Matteo.

The advance was admirably managed. Small parties of dragoons and Miquelets went on ahead along each of the roads to occupy the passes among the hills. When arrived at these points they had strict orders to let no one pass them until the troops appeared in sight, when the advance again pushed forward and secured another position for the same purpose.