TIDMMEN
RNS Number : 3145Z
Molecular Energies PLC
11 January 2024
11 January 2024
MOLECULAR ENERGIES PLC
("Molecular" or the "Company")
Paraguay exploration well spudded
First monies from President Argentina received
AIM IPO process for Green House Capital ongoing
Molecular Energies (AIM: MEN), the international energy company,
is pleased to provide a corporate and business update.
Highlights:
-- Tapir x-1, the Paraguay exploration well, has been successfully spudded;
-- First monies received to the UK from former Argentine business; and
-- Green House Capital IPO approved by directors and continuing
to progress towards Admission to trading on AIM.
Tapir x-1, Paraguay
Molecular is pleased to confirm that the Tapir x-1 exploration
well at the Pirity Concession in the Chaco, Paraguay has been
spudded. Molecular has a 50% interest in the Concession with OPIC,
ultimately beneficially owned by CPC, the state energy company of
Taiwan, being the other 50% holder. Molecular is the operator.
Target depth is approximately 3,800 metres with an estimated
drilling time of 45 days. The prospect and the adjacent complex of
prospects being drilled are covered by good quality 3D seismic data
from a survey conducted for Molecular in 2013/14.
The data suggests a clear structural feature being a four-way
dip closure with seal and target formations of volcaniclastic
sedimentary rocks and lecho sands. The prospect is located
approximately 40km in an easterly direction from the formerly
prolific Palmar Largo oil field in Formosa Province, Argentina
where a major producing formation is from volcanic rocks. If
successful, the well would unlock a complex of adjacent prospects
estimated by the Company to hold over 260 million barrels of oil of
Pmean unrisked resources.
Molecular estimates the main geological risk is that of
migration from the source rock which, in the absence of other data,
the Company believes is from the same or similar source to that
which filled the reservoir in Palmar Largo. Whilst migration paths
are capable of being postulated on available data, the overall
distance and other migration features mean that, despite the
suggested availability of good quality reservoir rocks, the chances
of success are assessed at 17%. A success would then prove up the
main risk of migration thereby unlocking the complex of prospects
as above.
Even with a conservative recovery factor of 5% and an oil price
of US$70 per barrel with incentivised fiscal tax rates of 10-14%
royalty and a tax on profit limited to 10% the prize therefore
makes the well compelling to drill. Oil is the more likely
hydrocarbon if a commercial discovery is made. Paraguay currently
imports all its oil over 1000km upriver from the South
Atlantic.
The Company expects that its next announcement in relation to
this well will be the achievement of target depth in approximately
45 days.
Argentina monies
The Company's sale of its Argentine business in September 2023
provided for inter alia repayment to Molecular over time and
subject to certain conditions of the inter-company loan of
approximately US$13 million.
Molecular is any event pleased to announce that a first
installment of monies comprising approximately US$500,000 has been
received by Molecular in the UK within the last month after the
change of President and Government in Argentina.
Green House Capital IPO
Work on the AIM IPO of the Company's 75% owned alternative
energy development division, Green House Capital Group plc ("Green
House") is progressing and the IPO is expected to take place in Q1
2024.
The IPO will be subject to a separate substantive announcement
anticipated to be made later this month. Excellent progress is
continuing to be made by Green House's subsidiaries with particular
progress being made by Duel Fuel Limited, whose innovative and
proprietary hydrogen injection technology was the subject of a
separate announcement made on 18 December 2023.
Other projects
Molecular has live potential leads regarding aviation and other
energy related projects. In Q1 2024 the Company intends to
prioritise its attention on the drilling of Tapir x-1 and the AIM
IPO of Green House Capital, and thereafter will focus on these
additional business opportunities.
For more information, please visit www.molecularenergiesplc.com
or contact:
Molecular Energies PLC +44 (0)20 7016 7950
Peter Levine, Chairman info@molecularenergiesplc.com
Rob Shepherd, Group FD
Cavendish Capital Markets Limited (Nominated
Adviser & Broker)
Simon Hicks, George Dollemore +44 (0)20 7220 0500
Tavistock (Financial PR & IR)
Simon Hudson, Nick Elwes, Charles Baister +44 (0)20 7920 3150
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 an oil and gas project to the green and alternative energy
sector.
The Company currently has an oil exploration asset in Paraguay.
The Company 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 direct through Molecular and under the Green House
Capital brand and through AIM listed Atome Energy PLC, a green
hydrogen, ammonia, and fertiliser company operating in Paraguay,
Costa Rica and Iceland, in which Molecular currently has 20.5%.
With a strong strategic and institutional base of support, no
third-party financial debt and a 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 Robert Shepherd, Finance
Director.
-ends-
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