REG - Oracle Power PLC - Joint Venture to Advance Green Hydrogen Project

Oracle PowerAnnouncement

30/03/2022 07:00

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RNS Number : 4649G  Oracle Power PLC  30 March 2022

 

30 March 2022

 

Oracle Power PLC

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

 

Joint Venture to Advance Green Hydrogen Project

 

Oracle Power PLC (AIM:ORCP), the international natural resources project
developer, is pleased to announce that it has entered in to a joint venture
agreement with the Private Office of His Highness Shaikh Ahmed Dalmook Al
Maktoum (represented through Kaheel Energy FZE, a wholly owned free zone
company incorporated under the laws of Dubai, UAE ("Kaheel Energy")), with the
objective of advancing the Company's green hydrogen project in Pakistan.

 

Highlights

 

·    The joint venture company, Oracle Energy Limited ("Oracle Energy"),
which was wholly owned by Oracle, aims to invest in, develop, own and operate
a facility for the manufacture of green hydrogen in the Province of Sindh,
Pakistan and also undertake its storage, transportation and sale (the
"Project").

·    Oracle Energy, a limited liability company incorporated under the
laws of Pakistan, will be funded on a 70:30 basis by Kaheel Energy and Oracle
Power respectively.

·    Kaheel Energy, which is 100% owned by His Highness Shaikh Ahmed
Dalmook Al Maktoum, will leverage His Highness's relevance and influence in
new energy generation and infrastructure to rapidly develop the Project
through Oracle Energy.

·    The joint venture structure is intended to provide a vehicle to
support the accelerated development of the Project to meet the growing
international and domestic demand of green hydrogen and clean energy. At the
same time, this structure will significantly mitigate the early-stage
development risk and funding requirement for the Project.

 

Naheed Memon, CEO of Oracle, commented:

 

"This is a hugely significant development for Oracle and provides a route
through which to establish a ground-breaking green hydrogen project in
Pakistan.  As shareholders will be aware, the Oracle team has been working
hard over the past six months to create a framework and investment path to
bring this revolutionary green hydrogen technology to Pakistan, and this joint
venture is a landmark development in bringing this to fruition.

 

"The parties involved will use their combined industry influence, and further
build their technical expertise, to move the Project forward at pace.
Importantly, this joint venture structure materially de-risks the development
process for Oracle Power shareholders whilst ensuring we maintain exposure to
this potentially highly valuable initiative.

 

"Issues relating to green energy and fuel security are high on the agenda
worldwide and we are more determined than ever to bring this emerging green
fuel source to commercialisation.  I look forward to providing updates in due
course as we work with His Highness Shaikh Ahmed Dalmook Al Maktoum to move
through the feasibility stages of the Project."

 

Further Information

 

It is intended that Oracle, Kaheel Energy and Oracle Energy (collectively, the
"Parties"), shall retain joint operational and management control and Naheed
Memon will also be the CEO of Oracle Energy.

 

The board of Oracle Energy will be the primary forum for discussion and
decision making on financial and investment decisions and other key decisions
and will act as the forum for stakeholder engagement.  The Board will consist
of three representatives appointed by His Highness Shaikh Ahmed Dalmook Al
Maktoum and two members appointed by Oracle Power.

 

Kaheel Energy has been issued with 233,330 new ordinary shares at 12 Pakistani
Rupees (Rs) per share, (a 20% premium to Oracle's subscription) in Oracle
Energy.  Kaheel Energy will be issued shares such that its shareholding is
70% and the remaining 30% will remain with Oracle Power on a pari passu basis.

 

Kaheel Energy will also have the right to offer for sale the entire share
capital of Oracle Energy to an unconnected third party, subject to Oracle
Power's compliance with the AIM Rules for Companies (in relation to its 30%
shareholding in Oracle Energy) and in particular AIM Rule 15. In the event of
such a sale, Oracle Power will be entitled to a 20% premium to the value of
any investments made (subject to evaluation) or costs incurred for and on
behalf of Oracle Energy in addition to the sale price.  Oracle will also have
the right, within 30 days, to either acquire Kaheel Energy's shareholding, by
itself or with a third party, at a price and/or better terms than those
offered or find a third party to acquire all the shares of Oracle Energy at a
price and/or better terms than those offered.

 

 

*ENDS*

 

For further information:

 Oracle Power PLC                               +44 (0) 203 580 4314

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

 Rory Murphy, James Harris, Rob Patrick
 Shard Capital (Broker)                         +44 (0) 20 7186 9952

 Damon Heath, Isabella Pierre
 St Brides Partners Limited (Financial PR)      +44 (0) 20 7236 1177

 Susie Geliher, Selina Lovell

 

About Oracle Power PLC:

 

Oracle Power PLC is an international natural resource and power project
developer quoted on London's AIM market.  The Company holds two highly
prospective gold assets in two globally significant gold regions of Western
Australia.  The Northern Zone Project is 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, and the Jundee East Gold Project is located
~9km east of Northern Star's Jundee Gold Mine, one of Australia's largest gold
mines.

 

The Company is also active in the power industry in Pakistan and is working to
establish a green hydrogen production facility in the Sindh Province through
its joint venture company, Oracle Energy.  The Company's initial project is
the Thar Block VI Project in south-east Pakistan where the Company is
advancing plans for a combined lignite coal mine, a 1,320MW mine mouth power
plant and a proposed coal gasification to urea project.

 

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