REG - Molecular Energies - Update on Corporate and Trading Matters

Molecular EnergiesAnnouncement

01/03/2024 07:00

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RNS Number : 2265F  Molecular Energies PLC  01 March 2024

1 March 2024

 

MOLECULAR ENERGIES PLC

("Molecular" or the "Company")

 

Update on Corporate and Trading Matters

 

Molecular Energies (AIM: MEN), the international energy company, provides an
update on corporate and trading matters.

 

Key Points:

 

·      Tapir x-1 exploration well, Paraguay, suspended. Participants
reviewing next steps

·      Positive cash receipts from Argentina continue

·      Strategic developments with regards to Green House Capital Group
including receipt of UK government EIS advance assurance

·      Sustainable Aviation Fuel studies progress

 

TAPIR X-1

The Paraguay exploration well Tapir x-1 has been suspended due to tough
drilling conditions without reaching the target zone. The drilling rig has
been retained on site pending further decision by the participants, taking
into account the risk-reward ratio of the well. Further information will be
provided at the relevant time subject to confidentiality and regulatory
restrictions. Investors are reminded that this was frontier exploration with
an estimated 17% chance of success.

 

ARGENTINA CONTINUES POSITIVE CASH CONTRIBUTION

Molecular is pleased to announce that President Petroleum S.A., the former
subsidiary of Molecular, has continued to pay down the US$13 million of debt
due to Molecular. Approximately US$1.28 million has now been paid down within
the last four months and expectations are that funds will continue to flow.

 

GREEN HOUSE CAPITAL GROUP ("GHC")

Significant progress has been made in relation to GHC, which will be subject
to a separate announcement early next week. GHC has been granted EIS advance
assurance by HM Revenue & Customs ("HMRC") in relation to the UK
government's EIS scheme. Based on the receipt of EIS advance assurance, the
directors of GHC also believe that a prospective investment in GHC should
constitute a 'qualifying holding' for a Venture Capital Trust ("VCT").

 

SUSTAINABLE AVIATION FUEL ("SAF")

As previously announced, studies commenced with Aecom, the worldwide
engineering consultancy, to investigate the feasibility of Molecular moving
into the business of SAF. These studies continue to progress before any final
decisions are made.

 

The skill set of Molecular, its management and its related parties as well as
its knowledge of multi-lateral funders and institutions supportive in
principle of SAF projects, place Molecular in a beneficial position should the
results of the feasibility studies prove positive.

 

SAF has a captive, permanent and increasing future offtake market as airlines
around the world have committed to increase the use of this product.
Production is a complex process and requires a substantial investment. Further
updates will be made in due course.

 

 

ATOME PLC

Molecular notes the progress of Atome and the Board remains of the view that
Molecular's investment in Atome will generate substantial shareholder value
for Molecular shareholders in future.

 

Peter Levine, Chair, commented:

 

"The result of the Tapir x-1 well, whilst disappointing, is not surprising
given it is the frontier exploration. Sometimes it is the better decision in
tough drilling conditions to make a bold resolution to suspend rather than
continuing in escalating cumulative down hole issues, especially taking into
account the risk-reward ratio.

 

"The progress being made in Green House is promising, as is the continued cash
flow coming from the previously disposed Argentine business. This bodes well
for the future and complete collection of the US$13 million intercompany
debt."

 

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 18.8%.

 

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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