REG - Molecular Energies - Strategic Update

Molecular EnergiesAnnouncement

25/10/2023 07:00

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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
(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 Advisor and 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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