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RNS Number : 6658S Molecular Energies PLC 13 March 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").
13 March 2023
MOLECULAR ENERGIES PLC
("MEN" or the "Company")
Corporate and Operational Update
Molecular Energies PLC (AIM: MEN), the international energy Company with both
hydrocarbon, and alternative energy divisions provides a corporate and
operational update.
Highlights
· 2022 Argentine Financial Statements show profit before tax* in
excess of US$19 million
· 19 MMboe Independently assessed net 2P Hydrocarbon Reserves for
Argentina as at 31 December 2022
· Jordan Coleman named CEO (non board) of the Company's Hydrocarbon
division
· Discussions on the IYA related party debt advancing centered on
reducing interest rate on all outstanding monies to zero, extending the
maturity period and debt reduction
· Green House joint venture Dual Fuel orders first equipment to
progress development work on first engine
· Green House, new 100% owned subsidiary HYSO Limited, working on
innovative methods for hydrogen refueling systems for heavy goods vehicles
without expensive refueling apparatus
· Green House has formed ATON 6 PLC a 100% owned carbon focused
company to capitalize on the Company's businesses, contacts and experience in
relevant carbon related sectors
· Paraguay exploration well remains on track to spud in May
Argentina 2022 Financial Statements
The auditor reviewed Financial Statements for the full year 2022 of the
Company's Argentine subsidiary, President Petroleum S.A ("PPSA") have been
filed with the relevant authorities in Argentina.
The manner of determination of such Financial Statements is as referred to in
the Company's 14 November 2022 announcement of the Q3 Financial Statements.
The Financial Statements, impacted by the material disruption of the
facilities due to an incident there in H2 2022, include turnover in excess of
US$34 million** and profit before tax* in excess of US$19 million both
converted from Argentine Peso and inflation adjusted.
Independently assessed Hydrocarbon Reserves as at 31 December 2022
Molecular Energies PLC (AIM: MEN), the international energy company, provides
an update on its Hydrocarbon Reserves in Argentina as at 31 December 2022
("the Reserves").
Molecular Energies net Hydrocarbon Reserves in Argentina as at 31 December
2022 has now been independently assessed after taking into account: production
in 2022 and the length of time remaining on the respective concessions (Rio
Negro to 2027/8 and Salta to 2050).
The Reserves that are being filed with the relevant authorities in accordance
with Argentine regulations are as follows:
YE2022 Reserves YE2021 Reserves
(MMboe) (MMboe)
1P 2P 3P 1P 2P 3P
Total Argentina 9.5 18.9 26.4 13.5 24.4 34.7
The above figures exclude all hydrocarbon resources (not reserves) including
its exploration prospect at the Martinez del Tineo field, Salta Province,
which is intended to be drilled in the latter part of H2 2023. The reserves
are predominantly oil.
Jordan Coleman
The Company is pleased to announce that Jordan Coleman (aged 39) has been
appointed Chief Executive (non board) of Molecular's Hydrocarbon Division with
immediate effect.
Jordan has been with Molecular for 10 years having joined as a junior field
manager progressing through to his more recent role of COO LatAm. He has
demonstrated pragmatic thinking, focus, loyalty, adaptability, and a
determination to succeed.
IYA related party debt ("IYA Debt")
The Company continues in negotiations with regard to the current level of
interest payable by the Group to IYA, a Company ultimately beneficially owned
by Peter Levine, the Company's Chairman and largest shareholder. The
independent directors' objective is centered on reducing the interest rate
applicable on all current outstanding monies to effectively zero, extending
the term of maturity and reducing the debt level.
While there can be no guarantee that the current subject to contract
negotiations currently underway with IYA will be satisfactory concluded, the
independent directors of the Company are optimistic that a way forward can be
found to achieve their objectives. It is now expected that a further update
will be given during April.
Green House Capital ("GHC")
The alternative energies division of Molecular has been making active progress
recently:
· Its joint venture Dual Fuel has made its first order of equipment
to progress its development work on conversion of a diesel truck engine to run
on a mix of hydrogen and diesel. Discussions in Paraguay with heavy goods
vehicle users have progressed with two fleet users having already volunteered
to have a test conversion using a hydrogen/diesel mix of fuel.
· GHC has incorporated HYSO Limited, a 100% owned subsidiary which
is now working on an innovative method for refueling heavy goods vehicles
without expensive refueling apparatus.
· ATON 6 PLC (from the Atomic number six being carbon), has been
formed as a 100% subsidiary of GHC with the decision made to go straight to
PLC status. The nature of ATON 6's business is to capitalise on its management
and associated parties' experience and contacts in the sphere of carbon
investments.
· The lithium potential in the north of Argentina is still being
assessed and there are no further developments in this regard.
Paraguay
The exploration well in the Chaco, Paraguay remains on track to spud in May
this year in accordance with the latest published expectations. The first
personnel are already in the field with the well design settled and the
drilling well on paper exercise (DWOP) with all contractors scheduled for 18
April 2023. All relevant permissions have been obtained.
Peter Levine, Chairman, commented:
"With the handing over the executive responsibility in the Hydrocarbon
division to my experienced colleague Jordan Coleman, my attention in Molecular
turns to develop our Green House Capital division.
"In relation to Green House, as was seen previously with ATOME and now with
Dual Fuel, HYSO and ATON 6, each step capitalizes on and uses as a
steppingstone some part of the core assets or experience of Molecular as a
whole and each introduced into the group to take them to an ultimately
independent level in the fullness of time.
"These are early days so step by step, but the direction of travel is clear".
Glossary:
*Converted from Argentine peso inflation adjusted and means, in the context of
the report alone, profit after interest, income and forex operations but
before tax, depreciation and amortization
**Converted from Argentine peso inflation adjusted
1P means proven reserves
2P means proven and probable reserves
3P means proven, probable and possible reserves
MMboe means million barrels of oil and oil equivalent (gas)
For further information please visit www.molecularenergiesplc.com
(http://www.molecularenergiesplc.com) or contact:
Molecular Energies PLC +44 (0)20 7016 7950
Nikita Levine, Investor Relations info@molecularenergiesplc.com (mailto:info@molecularenergiesplc.com)
finnCap (Nominated Advisor and broker) +44 (0)20 7220 0500
Christopher Raggett, 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 oil and gas
projects to subdivisions in the green and alternative energy sub-sectors.
The Company has oil and gas production in two geographical markets: Argentina
and the United States, as well as exploration assets in both Argentina and
Paraguay. The Company also 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
under the Green House Capital brand and through AIM listed ATOME Energy PLC
operating in Paraguay, Costa Rica and Iceland, producing green hydrogen and
ammonia for use in fuels.
With a strong strategic and institutional base of support, an in-country
management team as well as the 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 Peter Levine,
Chairman.
-ends-
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