REG - Oracle Power PLC - Q1 Update and Shareholder Q&A Session

Oracle PowerAnnouncement

13/04/2022 07:00

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RNS Number : 1902I  Oracle Power PLC  13 April 2022

 

13 April 2022

 

Oracle Power PLC

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

 

Q1 Update and Shareholder Q&A Session

 

Oracle Power PLC (AIM:ORCP), the international natural resources project
developer, is pleased to provide the following update statement from its CEO,
Naheed Memon, with respect to developments during Q1 2022:

 

"2022 has kicked off with period of high activity across every dimension of
our portfolio as we look to consolidate, advance and commercialise our now
diverse portfolio of interests and establish ourselves as a natural resource
project developer on an international scale.

 

"Our energy interests in Pakistan are moving through the gears as we look to
advance and commercialise our significant footprint in energy production. With
energy security being a critical and urgent element of the international
conversation, the Oracle team is focused on ensuring Pakistan's bountiful
energy resources across the spectrum are unlocked to make the country a
meaningful contributor to the domestic and international energy markets.

 

"Our ambition to bring the revolutionary potential of green hydrogen to the
Pakistani market advanced significantly during the period.  We have formed a
dedicated joint venture to expedite this process, bringing in capital and
important industry partnerships. The joint venture company, Oracle Energy
Limited ("Oracle Energy"), will be 70% funded by Kaheel Energy, a company
which is 100% owned by His Highness Shaikh Ahmed Dalmook Al Maktoum.  The
joint venture structure is intended to leverage His Highness's relevance and
influence in new energy generation and infrastructure and also mitigate the
Company's early-stage development risk and funding requirement for the
project.  To satisfy Oracle's immediate estimated spending on the Oracle
Energy joint venture, the Company successfully raised £800,000 by way of a
placing of new ordinary shares in Oracle, ensuring that we are well positioned
to make good headway with this significant strategic project without delay.

 

"I am resolute in my belief that green hydrogen offers an unparalleled
opportunity for Pakistan to develop a significant, domestically produced and
affordable energy source with exceptional green credentials.  I am honoured
to be working on this project with His Highness Shaikh Ahmed Dalmook Al
Maktoum as we look to bring this pioneering technology to Pakistan and I look
forward to reporting on our progress henceforth. Assisting us with this
process is H&P Advisory Limited, part of the Hannam & Partners group,
which we appointed as financial adviser and consultant to provide strategic
advisory and financial services to realise the full potential of our green
hydrogen project for the benefit of our stakeholders.  H&P's work has
been integrated into the various workstreams which are underway between Oracle
and various other partners including buyers, technology suppliers, lenders and
other interested parties.

 

"Our conventional power interests also continue to move forward
encouragingly.  We have been advised that there is further progress on the
Indicative Generation Capacity Expansion Plan for 2022 ("IGCEP"), prepared by
the National Transmission Dispatch Company ("NTDC") in Pakistan.  As
previously reported, the National Electric Power Regulatory Authority
("NEPRA") has directed NTDC to consider the Company's Thar Block VI Project
for inclusion in the next IGCEP annual review.  This annual review will
provide the government a plan for purchase of power, over the next few years,
from candidate projects such as ourselves, subject to government requirements.

 

"Furthermore, in January, Oracle signed a non-binding MoU with Sui Southern
Gas Company Ltd ("SSGC"), a publicly listed company on the Pakistan Stock
Exchange, which is majority-owned by the Government of Pakistan, relating to
the joint development of a synthetic natural gas (syngas) project.  Under the
terms of the MoU, Oracle and SSGC will explore and carry out feasibility
studies for the potential development, owning, operating and sale of syngas
(derived from the Company's Thar Block VI Project) to SSGC.  Syngas produced
from this arrangement would be integrated into SSGC's transmission and
distribution network which delivers pipeline quality indigenous natural gas
and re-gasified liquified natural gas (LNG) to domestic, commercial and
industrial consumers.  Domestically produced syngas would offer a very
affordable and viable alternative to imported fuel, and I am delighted to be
moving forward with SSGC to advance this promising and mutually beneficial
relationship.

 

"Looking now to Australia, our Jundee East continues to generate a significant
amount of excitement amongst our exploration geologists who believe that this
project, which is located on a previously unrecognised greenstone belt, has
the potential to deliver considerable mineable ounces.  Our first step
towards achieving this objective was our maiden drill programme, which was
completed at the beginning of March.  This programme, which consisted of 54
holes to a maximum of 153 metres, for a total of 3,830 metres, focussed on
five priority areas.  These areas were identified from a comprehensive
geochemical programme conducted in 2021 ensuring our drilling was targeting on
the most prospective areas of the licence.  We are now eagerly awaiting the
results of this drill programme from the laboratory and will report these back
to the market once received.

 

"Our Northern Zone Project also delivered a solid performance with the receipt
of positive gold assays which, together with historical results, delineated an
Exploration Target of 2.5-4.8Moz gold.  This was a significant result and
begins to give shareholders a sense of the potential scale at Northern Zone.
Building on these results, our next phase of work will include diamond
drilling to improve the Company's understanding of the geometry and extent of
the project, and to begin to convert the Exploration Target into Resource
ounces.

 

"Q2 is expected to be similarly busy for the operational and management teams
at Oracle and we should have a pipeline of high impact news flow to deliver to
the market over the coming months."

 

 

The Board of Oracle would like to advise shareholders that Naheed Memon, CEO
of Oracle, will be conducting a shareholder Q&A session, details of which
will be made available on the Company's website by close of business on 22
April 2022.

 

Shareholders are invited to submit questions to Ms. Memon by 5.00 p.m. on 19
April 2022 via email at shareholderenquiries@stbridespartners.co.uk.  There
is no guarantee that all questions will be discussed on the call given time
limitations and/or specific sensitivities with respect to operations.

 

 

*ENDS*

 

For further information:

 Oracle Power PLC                                        +44 (0) 203 580 4314

 Naheed Memon - CEO
 Strand Hanson Limited (Broker & 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)

 Susie Geliher, Catherine Leftley                        +44 (0) 20 7236 1177

 

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 through Oracle Energy Limited,
a joint venture with His Highness Shaikh Ahmed Dalmook Al Maktoum.  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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