TIDMMEN
RNS Number : 1565R
Molecular Energies PLC
25 October 2023
25 October 2023
MOLECULAR ENERGIES PLC
("MEN" or the "Company")
Paraguay Drilling
Strategic Pivot
Sustainable Aviation Fuel
Molecular Energies PLC (AIM: MEN), the international energy
company, provides an update relating to its activities.
Paraguay Drilling
Final on-site commissioning of the drilling rig is taking place.
The Company understands from the drilling company that the repaired
blow out preventer ("BOP") has passed its operational tests in
Brazil, from where it is due to be shipped, and is currently
expected to be on site at or around the end of the second week of
November.
The BOP is a critical safety component of the drilling rig and
MEN will not authorise any drilling activities unless it receives
certification, and the rig passes its final on-site safety tests.
MEN now targets spudding the Tapir x1 well in November and will
provide further updates as appropriate.
The well if successful will potentially unlock a complex of
prospects, estimated by the Company to contain in aggregate over
260 MMbo of Pmean Unrisked Resources. Accordingly, whilst MEN
stresses the exploration risks with the estimated chance of success
of 17% even using a conservative recovery factor of 5% and a
conservative oil price of US$70 per barrel, the potential of the
prize makes this exploration well compelling.
Strategic Pivot
It is expected that cash flow from the recent sale of the
Argentine hydrocarbon assets will commence during 2024, providing
an uplift to MEN's financial position. Thereafter, and irrespective
of the outcome of the Paraguay exploration programme, the Company
intends to focus its attention and resources increasingly on
originating and developing alternative energy projects of scale
with attractive long-term returns.
MEN will therefore evolve into an alternative energy investment
and trading house, utilising funds to invest in businesses
operating in areas where MEN and its core management have
significant hands-on expertise, experience and traction. This will
build on the success of the successful AIM listing of Atome Energy,
a MEN incubated business and now a 20.5% investment in which MEN
management has demonstrated the creation of shareholder value based
on the Company's position in Paraguay.
This strategy will continue with Green House Capital Group, in
which MEN has a material interest, and which is a developer, and
operator of alternative energy businesses, all of which have near
term income generation projects and can be independent, capable in
due course of being separately funded without recourse to their
parent company, whilst still benefitting from Group and sister
businesses' synergies and intercompany trading.
Sustainable Aviation Fuel ("SAF")
MEN is also pursuing its interest in SAF which, if proved
feasible, would be a major project and which, like Atome Energy and
Green House Capital would in due course follow the pattern of being
a potentially valuable investment for MEN. SAF is a must-have fuel
for the future of aviation, particularly that made with green
hydrogen. MEN is in a favorable geographic and cost position and
has the know-how and commercial contacts to drive this project
forward.
In the last few days, the ReFuelEU Aviation directive has been
signed by the European Union meaning that, from 2025, SAF from
green hydrogen must be used in increasing amounts by all planes
leaving EU airports. As a result, MEN views this as a significant
business opportunity.
Aecom, the international engineering consultancy, is already
engaged in the early-stage feasibility plan, with discussions with
feedstock, technology and offtake partners commencing. It is the
intention of MEN that, if the project is found to be technically
and economically feasible, to collaborate with an
industry/strategic financial partner on a project funding basis,
capitalising on MEN's strategic position and capabilities. Certain
potential parties are already known to MEN through its own and
sister companies' activities.
Conclusions
MEN intends to build at scale and expeditiously a global
investment and energy related projects factory with far reach and
an impressive body of management, contacts, experience, and wider
group facilitation.
MEN expects to make further announcements in the near
future.
Peter Levine, Chairman, commented: "The Company has a pipeline
of potentially large scale and lucrative new energy projects that,
subject to finance, can develop at pace. Our competitive advantage
lies in our management, experience, contacts and geographic
footprint. This secret sauce places Molecular in a unique position
for a company of its market size, allowing us to punch well above
our weight.
"For the immediate future, we have an exploration oil well to
drill in Paraguay and Green House Capital to progress."
For more information, please visit www.molecularenergiesplc.com
or contact:
Molecular Energies PLC +44 (0)20 7016 7950
Peter Levine, Chairman info@molecularenergiesplc.com
Rob Shepherd, Group FD
Cavendish Capital Markets Limited
(Nominated Advisor and Broker)
Simon Hicks, George Dollemore +44 (0)20 7220 0500
Tavistock (Financial PR & IR)
Simon Hudson, Nick Elwes, Charles
Baister +44 (0)20 7920 3150
Notes to Editors
Molecular Energies PLC is an AIM listed company at the forefront
of energy development and has interests across the energy spectrum,
from an oil and gas project to the green and alternative energy
sector.
The Company currently has an oil exploration asset in Paraguay.
The Company has two separate subdivisions which are focused on
early-stage opportunities in the green and/or alternative energy
sub-sector.
Activities in the green and alternative energy space are being
carried out direct through Molecular and under the Green House
Capital brand and through AIM listed Atome Energy PLC, a green
hydrogen, ammonia, and fertiliser company operating in Paraguay,
Costa Rica and Iceland, in which Molecular currently has 20.5%.
With a strong strategic and institutional base of support, no
third-party financial debt and a Chairman whose interests as the
largest shareholder are aligned to those of its shareholders,
Molecular gives UK investors access to an energy growth story
combined with world class standards of corporate governance,
environmental and social responsibility.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR"). The person who arranged for the release of this
announcement on behalf of the Company was Robert Shepherd, Finance
Director.
-ends-
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