REG - Oracle Power PLC - Q4 Update and Shareholder Q&A Session

Oracle PowerAnnouncement

18/01/2022 07:05

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RNS Number : 7372Y  Oracle Power PLC  18 January 2022

 

18 January 2022

 

Oracle Power PLC

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

 

Q4 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 Q4 2021:

 

"Over the course of 2021, we have been focused on our objective of creating
scale and diversification in our portfolio to establish Oracle in the
international power and resources sector. I am therefore pleased with the
progress we have made throughout this year in achieving this goal and we have
ended the last quarter of 2021 on a strong note. We now hold a diversified
portfolio with multiple high growth divisions, with the support from two
state-owned Chinese enterprises and a highly supportive strategic shareholder.
Oracle is developing two highly prospective gold projects in Western
Australia, pursuing power and gas generation in Pakistan, and is poised to
become a front runner for the clean energy movement in Pakistan by developing
a green hydrogen production facility. We are very confident that our growing
portfolio of assets and interests will generate significant returns for our
stakeholders.

 

"The Company is making significant progress with the advancement of its two
100% owned gold assets in Western Australia, the Jundee East and Northern Zone
projects. Both continue to return highly encouraging results, demonstrating
their potential for development.

 

"At Jundee East, the Department of Mines Industry Resources and Safety
approved the programme of work ("PoW") in October for drilling of the five
target areas defined as part of the maiden drill programme. BM Geological
Services was then contracted to commence drilling shortly after and to secure
a drill rig. A slimline Reverse Circulation ("RC") track mounted drill rig was
secured in December, and mobilisation of the drill is expected to site in a
few weeks. The maiden drill programme aims to confirm the presence of a
previously unrecognised greenstone belt proximal to Northern Star's Jundee
Gold Mine. With the PoW due to begin later this month, I look forward to
sharing updates from the programme.

 

"At Northern Zone, which is located 25km east of Kalgoorlie, home of the
second largest gold mine in Australia, assay results from the maiden drilling
campaign were sent for analysis by ALS Global in December and, post-period
end, highly positive results were returned in January 2022. The first phase RC
drill programme completed in October 2021, mainly targeting gold
mineralisation and results were based on 1,161 assay samples that were
processed at the lab. Based on historical results and those of the recent
seven drill holes, the project has been interpreted as an intrusion related
gold system with wide gold mineralised felsic porphyry intrusions, which holds
the potential to host significant ounces of gold.  Indeed, based on the
historical results and the results of this recent drilling, an Exploration
Target of 200-250Mt at 0.4-0.6g/t Au for 2.5 to 4.8Moz gold has been
established, reconfirming our belief that Northern Zone has the scale and
scope to become a significant gold mining operation.

 

"Moving to our interests in Pakistan, since announcing a non-exclusive
co-operation agreement in October with PowerChina International Group Ltd
("PowerChina") with the objective of jointly developing a green hydrogen
production facility, we have already made encouraging progress on this new
pillar in our strategy. Green hydrogen is increasingly becoming recognised and
developed as a competitive fuel source across a range of sectors and forms a
key part of the global transition towards a carbon free future.

 

"I was honoured to be invited to a ceremonial signing of the non-exclusive
co-operation agreement with PowerChina in October, held at the Energy
Department Sindh, Karachi, Pakistan. Hosted by the Minister of Energy, Sindh,
and attended by other government officials as well as the country
representative of PowerChina who was joined by the Executive Vice President
via video link, this prestigious event was a strong endorsement from the local
Government of Sindh. Those who attended recognised this as an historic moment
as Pakistan moves towards more renewable energy projects. Moreover, it
solidified PowerChina's commitment to the project and the Consul General of
China in Karachi assured the support of his government on this. All parties
involved clearly recognise the significance of this project on a global level
and I was encouraged to see that all are eager to advance the project's
development as swiftly as possible.

 

"Following the agreement, we welcomed Dr Naveed Akhtar as Chief of Technology
- Hydrogen, to the Oracle team. An expert in hydrogen fuel cells, this marked
an important step towards advancing our green hydrogen strategy in Pakistan
and Dr Akhtar's over 20 years of experience in the industry will be key in
advising us on the technological aspects as we look to develop a green
hydrogen production facility in Pakistan and as we then look to the future
commercialisation of hydrogen.

 

"In December, PowerChina completed a preliminary technical study, establishing
the key technical and commercial contours for the delivery of a hydrogen
production facility in Pakistan. An ambitious 400MW capacity hydrogen plant is
being targeted, with planned production of approximately 150,000kg a day. Our
strategic partner is actively pursuing technology suppliers and assessing
costs internationally and together we are working to refine the commercial
frameworks to advance this project. I hope to share progress on this in the
coming months. Meanwhile, the process for arranging land and infrastructure to
build this large and important facility in the province is underway at a
considerable pace.

 

"I also had the privilege of being invited by the Government of Sindh to
present its green hydrogen production strategy, which has already been defined
as a 'Global Goal', at the Expo 2020 in Dubai, a further sign of the
government's endorsement of our plans.  In such a short time since signing
the co-operation agreement with PowerChina and embarking on this new strategic
path, we have already made major strides in moving it forward. I am delighted
to position Oracle as a frontrunner in Pakistan for the production of clean
energy, and I look forward to carrying on this momentum in 2022 and seeing
further advancements.

 

"Also in Pakistan, we continue to make progress with regards to our Thar Block
VI Project particularly in the context of the approved Indicative Generation
Capacity Expansion Plan 2021-2030 ('IGCEP'), prepared by the National
Transmission Dispatch Company ('NTDC') in Pakistan.  As previously announced,
the National Electric Power Regulatory Authority ('NEPRA') has approved a plan
to expand electricity generation capacity from the existing 34,776MW to
61,112MW by 2030.  In addition, NEPRA has directed the NTDC to consider the
Company's Thar Block VI Project for inclusion in the next IGCEP annual
review.  This is a positive development for Oracle and we continue to monitor
the onward progress of the IGCEP annual review and will deliver updates to the
market accordingly.  Separately, we are also actively pursuing opportunities
with our coal-to-gas proposition, and this is beginning to generate
significant interest within Pakistan, particularly given the severe gas crisis
and weak currency.  We look forward to sharing further insights on this, and
the other dimensions of our growing business, over the coming weeks."

 

 

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 25
January 2022.

 

Shareholders are invited to submit questions to Ms. Memon by 12.00pm on 20
January 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 (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 in association with
PowerChina.  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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