REG - Molecular Energies - Corporate and Business Update

Molecular EnergiesAnnouncement

11/01/2024 07:00

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RNS Number : 3145Z  Molecular Energies PLC  11 January 2024

11 January 2024

 

MOLECULAR ENERGIES PLC

("Molecular" or the "Company")

 

Paraguay exploration well spudded

First monies from President Argentina received

AIM IPO process for Green House Capital ongoing

 

Molecular Energies (AIM: MEN), the international energy company, is pleased to
provide a corporate and business update.

 

Highlights:

·    Tapir x-1, the Paraguay exploration well, has been successfully
spudded;

·    First monies received to the UK from former Argentine business; and

·    Green House Capital IPO approved by directors and continuing to
progress towards Admission to trading on AIM.

 

Tapir x-1, Paraguay

Molecular is pleased to confirm that the Tapir x-1 exploration well at the
Pirity Concession in the Chaco, Paraguay has been spudded. Molecular has a 50%
interest in the Concession with OPIC, ultimately beneficially owned by CPC,
the state energy company of Taiwan, being the other 50% holder. Molecular is
the operator.

 

Target depth is approximately 3,800 metres with an estimated drilling time of
45 days. The prospect and the adjacent complex of prospects being drilled are
covered by good quality 3D seismic data from a survey conducted for Molecular
in 2013/14.

 

The data suggests a clear structural feature being a four-way dip closure with
seal and target formations of volcaniclastic sedimentary rocks and lecho
sands. The prospect is located approximately 40km in an easterly direction
from the formerly prolific Palmar Largo oil field in Formosa Province,
Argentina where a major producing formation is from volcanic rocks. If
successful, the well would unlock a complex of adjacent prospects estimated by
the Company to hold over 260 million barrels of oil of Pmean unrisked
resources.

 

Molecular estimates the main geological risk is that of migration from the
source rock which, in the absence of other data, the Company believes is from
the same or similar source to that which filled the reservoir in Palmar Largo.
Whilst migration paths are capable of being postulated on available data, the
overall distance and other migration features mean that, despite the suggested
availability of good quality reservoir rocks, the chances of success are
assessed at 17%. A success would then prove up the main risk of migration
thereby unlocking the complex of prospects as above.

 

Even with a conservative recovery factor of 5% and an oil price of US$70 per
barrel with incentivised fiscal tax rates of 10-14% royalty and a tax on
profit limited to 10% the prize therefore makes the well compelling to drill.
Oil is the more likely hydrocarbon if a commercial discovery is made. Paraguay
currently imports all its oil over 1000km upriver from the South Atlantic.

 

The Company expects that its next announcement in relation to this well will
be the achievement of target depth in approximately 45 days.

 

Argentina monies

The Company's sale of its Argentine business in September 2023 provided for
inter alia repayment to Molecular over time and subject to certain conditions
of the inter-company loan of approximately US$13 million.

 

Molecular is any event pleased to announce that a first installment of monies
comprising approximately US$500,000 has been received by Molecular in the UK
within the last month after the change of President and Government in
Argentina.

 

Green House Capital IPO

Work on the AIM IPO of the Company's 75% owned alternative energy development
division, Green House Capital Group plc ("Green House") is progressing and the
IPO is expected to take place in Q1 2024.

 

The IPO will be subject to a separate substantive announcement anticipated to
be made later this month. Excellent progress is continuing to be made by Green
House's subsidiaries with particular progress being made by Duel Fuel Limited,
whose innovative and proprietary hydrogen injection technology was the subject
of a separate announcement made on 18 December 2023.

 

Other projects

Molecular has live potential leads regarding aviation and other energy related
projects. In Q1 2024 the Company intends to prioritise its attention on the
drilling of Tapir x-1 and the AIM IPO of Green House Capital, and thereafter
will focus on these additional business opportunities.

 

For more information, please visit www.molecularenergiesplc.com
(http://www.molecularenergiesplc.com) or contact:

 

 Molecular Energies PLC                                              +44 (0)20 7016 7950

 Peter Levine, Chairman                                              info@molecularenergiesplc.com (mailto:info@molecularenergiesplc.com)

 Rob Shepherd, Group FD

 Cavendish Capital Markets Limited (Nominated Adviser & Broker)      +44 (0)20 7220 0500

 Simon Hicks, George Dollemore

 Tavistock (Financial PR & IR)                                       +44 (0)20 7920 3150

 Simon Hudson, Nick Elwes, Charles Baister

 

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.

 

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