REG - Oracle Power PLC - £500,000 placing to support Green Hydrogen Project

Oracle PowerAnnouncement

06/02/2023 07:00

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RNS Number : 9483O  Oracle Power PLC  06 February 2023

This announcement contains inside information for the purposes of Article 7 of
EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018 (as amended).

 

6 February 2023

 

Oracle Power PLC

("Oracle", the "Company" or the "Group")

 

£500,000 placing to support the Green Hydrogen project development

 

Oracle Power PLC (AIM: ORCP), a leading developer of Green Hydrogen, is
pleased to announce that it has successfully raised gross proceeds of
£500,000 by way of an oversubscribed placing of 294,117,647 new ordinary
shares of 0.1p each in the Company ("Ordinary Shares") (the "Placing
Shares") at a price of 0.17p per Ordinary Share (the "Placing Price") (the
"Placing").

 

The net proceeds of the Placing will be utilised primarily to support the
advancement of the Company's Green Hydrogen project (the "Project") through
the joint venture with His Highness Sheikh Ahmed Dalmook Al Maktoum.

 

Oracle announced on 28 November 2022 the acquisition by Oracle Energy of
State land by way of a long lease located in the Thatta district, Sindh,
south-east Pakistan, where its flagship Green Hydrogen project will be
located.  The Company's partner, His Highness Sheikh Ahmed Dalmook Al
Maktoum, who owns 70% of Oracle Energy, is an active investor and developer
of a number of power generation projects across the Middle East, Asia and
Africa.

The Project would be Pakistan's first commercial Green Hydrogen production
facility, with an initial capacity to produce 55,000 tonnes annually, which
would be one of the largest hydrogen projects in the region.

Green Hydrogen is differentiated from other types of hydrogen as it is
powered exclusively by renewable energy sources and
is produced through water electrolysis. Hydrogen and its
by-product ammonia are key constituents for critical sectors including
manufacturing, transportation, power generation and agriculture.

The Project site in Sindh is within a
highly attractive, strategic region in southern
Pakistan, located within the Gharo-Jhimpir wind corridor, where over 1 GW
of renewable power has been constructed and commissioned.

Beyond access to Pakistan's national grid, the Project has immediate
proximity to existing infrastructure, including access to water in the
form of Karachi's largest fresh-water reservoir, and established rail and
road infrastructure, which connect to Pakistan's two largest ports -
Karachi Port and Port Qasim.  Oracle Energy intends to supply its
production to local industries supporting manufacturing, fertiliser
production, gas utilities, transport and power generation, and also to
export to the Middle East, Europe, China and Asia.

The Project is targeting annual production of 55,000 tonnes of Green
Hydrogen (equivalent to the production of 150,000 kg of hydrogen per day).
 Oracle Energy intends to supply its production to
local industries supporting manufacturing, fertiliser production, gas
utilities, transport and power generation, and also to export to European
and Asian markets.

The Project plans the development of solar and wind power facilities with a
combined output of 1.2 GW hybrid power from proposed capacity 700MW solar and
500MW wind and battery storage to ensure the continuous production of hydrogen
throughout the year.

Oracle Energy has made rapid progress in the development of the Project to
date. In October 2022, it
appointed thyssenkrupp Uhdeto ("thyssenkrupp") to lead the technical and
commercial feasibility study for the Project, due to be released in
H1 2023. The Company is in advanced discussion with multiple partners
across the value chain and has signed MOUs and non-exclusive cooperation
agreements including with the Green Hydrogen certifier, TÜV SÜD. It is also
in advanced discussions with potential offtake customers and financiers.

The Placing has been carried out through Global Investment Strategy UK Limited
("GIS") and the Company has entered into a placing agreement dated 5 February
2023 (the "Placing Agreement") with GIS pursuant to which it, as agent for the
Company, has procured placees for the Placing Shares at the Placing Price. As
part of the Placing, GIS will receive 11,764,706 warrants over new Ordinary
Shares, exercisable at the Placing Price for a period of 2 years from the date
of the Placing.

 

Naheed Memon, CEO of Oracle, commented:

 

"We continue to make great strides in advancing our Green Hydrogen strategy in
Pakistan and today's fundraise will enable us to continue on this upward
trajectory. The majority of the funds raised will be used to support the Green
Hydrogen initiative through Oracle Energy, whilst also providing us with
sufficient working capital to progress the strategies of the other projects in
Oracle's portfolio.

 

We are now looking toward the next stage in the Project's development as we
move forward with detailed technical and financial feasibilities. With this
financial support, combined with that from His Highness Shaikh Ahmed Dalmook
Al Maktoum, I am confident we will be able to expedite the development of this
ground-breaking and globally significant project."

 

Admission to Trading and Total Voting Rights

 

Application will be made for the Placing Shares, which will rank pari
passu with the existing ordinary shares, to be admitted to trading on AIM,
with Admission expected to become effective at 8:00 a.m. on or around 10
February 2023.

 

Following Admission, the total issued share capital of the Company will be
3,372,415,387 Ordinary Shares, with no shares in Treasury. Therefore, the
total current voting rights in the Company following Admission will be
3,372,415,387 and this figure may be used by shareholders in the Company as
the denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure Guidance and
Transparency Rules.

 

 

*ENDS*

 

For further information:

 

 Oracle Power PLC                                      +44 (0) 203 580 4314

 Naheed Memon - CEO
 Strand Hanson Limited (Nominated Adviser and Broker)  +44 (0) 20 7409 3494

 Rory Murphy, Matthew Chandler, Rob Patrick
 Buchanan (Financial PR)                               +44 (0) 203 7466 5000

 Oonagh Reidy/ Abigail Gilchrist

 

About Oracle Power PLC:

 

Oracle Power PLC is an international natural resource and power project
developer quoted on London's AIM market. The Company currently has two areas
of focus: Western Australia and Pakistan. The Company is active in the energy
industry in Pakistan and is working to establish a Green Hydrogen production
facility through Oracle Energy Limited, a joint venture with His Highness
Shaikh Ahmed Dalmook Al Maktoum.

 

Oracle Energy has been set up as the project development company and is funded
on a 70:30 basis by Kaheel Energy (100% owned by His Highness Shaikh Ahmed
Dalmook Al Maktoum) and Oracle Power respectively.  The project development
company provides a vehicle to support the accelerated development of the Green
Hydrogen project to meet the growing international and domestic demand of
Green Hydrogen and clean energy.

 

The Company also continues to advance towards the development of its Thar
Block VI Project in south-east Pakistan into a mine, a power plant and a
proposed coal gasification project.

 

In Australia, its primary focus is the Northern Zone Gold Project, located
25km east of the major gold mining centre of Kalgoorlie, the home of the
'Super Pit' mine, the second largest gold mine in Australia.  Northern Zone
has a current Exploration Target of 200-250Mt at 0.4-0.6g/t Au for between 2.5
- 4.8Moz gold, with drilling being planned to define a maiden inferred JORC
resource.

 

 

 

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