TIDMPPC
RNS Number : 7402D
President Energy PLC
01 July 2021
1 July 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
Corporate Update in relation to Atome
First Project Agreement signed
Separate London Stock Exchange listing of Atome targeted for
later in 2021
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets, is pleased to
announce significant new developments with regards to Atome, the
Company's newly-established hydrogen and ammonia production
subsidiary.
Highlights
-- Atome has entered into a co-operation agreement with the innovation arm ("Techco") of a government-owned green electricity generator ("Genco"), located in a democratic and economically open country in the Americas
-- The agreement relates to the proposed productio n , sale and
distribution by Atome of green hydrogen, ammonia and the associated
oxygen by-product initially for the local market and thereafter for
export ("the Project")
-- The co-operation agreement provides for assistance by Techco
in the procurement of a suitable power purchase agreement ("PPA")
from the national electricity supplier who takes their power from
Genco and the provision of suitable land for the Project by
Genco/Techco in close proximity to the power source
-- If implemented, it is intended that the Project (which will
be the first of its kind in the country) will comme n ce with a
pilot production programme and followed by industrial production to
be spooled up by the mid/late 2020's to have an output capacity of
some 30,000 MT (metric tons) of Hydrogen per year which can if
required generate some 180,000 MT (metric tons) of green ammonia
per year utilising 200MW (megawatts) of electricity
-- The country in question has significant current and future
green power capacity to fulfil the anticipated demand as and when
the project progresses
-- Atome will be the owner, funder and operator of the Project
with Techco and its other innovation projects benefiting from the
profits of the venture in due course in consideration of its
co-operation
-- This represents an important initial step by Atome in pursuit
of its stated business objective to become a large scale hydrogen
and ammonia producer during this decade. Further announcements will
be made in due course both as to the Project and other
hydrogen-associated ventures which are under discussion
-- Atome has appointed Strand Hanson Limited ("Strand Hanson")
to act as financial advisor in relation to the proposed listing of
Atome's shares on the standard list of the London Stock Exchange
("Listing"), which is currently expected to take place later this
year
-- The Company intends to invite shareholders of President on a
record date to be defined to participate in the Listing alongside
new investors
-- The Listing is expected to facilitate a distribution in
specie of shares in Atome to President shareholders
-- A separate listing of Atome will broaden the scope of
opportunities available to its hydrogen and ammonia business to a
completely separate audience decoupled from the valuation metrics
of the Company's current Argentina-centric core hydrocarbon
business
-- President continues to finance Atome's working capital from
its own resources. The listing will allow Atome to raise finance to
fund the Project and any future initiatives in its own right
thereby negating any potential dilution for President
shareholders
Co-operation agreement
Atome, a hydrogen and ammonia business in which President has an
85 per cent shareholding has entered a co-operation agreement with
the innovation arm of a state-owned power generation company
located in a country in the Americas whose identity shall remain
undisclosed at present due to commercial sensitivity.
The country is a stable, western facing, economically open
democracy which has a stated objective to de-carbonise its economy
and promote sustainability in line with the sentiments of the Paris
Agreement of 2015 as well as in accordance with that country's own
national strategic energy plan. The fiscal and taxation policy
provide incentive for inward investment in this regard. The country
generates green electricity and has available capacity to provide
Atome in due course with the necessary power to fulfil its business
objectives.
The objective of Atome, benefiting from the international
expertise, financial support and footprint of President and its
leading shareholders, is to become the first industrial scale
hydrogen and ammonia producer in the country helping to promote the
relevant government objectives to de-carbonise its economy by
2050.
Whilst the Project is at an early stage, the current business
plan calls for a progressive ramp up of production of hydrogen,
ammonia and oxygen from a pilot programme to full industrial
production and storage. The Company envisages eventual production
capacity of 30,000 MT of hydrogen per year allowing for the
generation if required of up to 180,000 MT of green ammonia per
year as well as 266,000 MT of oxygen per year utilising 200MW of
power by mid/late 2020's. Atome considers that, with hydrogen
increasingly considered as a power source including for heavy goods
transport, and the potential for ammonia in the fertiliser and
maritime sector, there will be significant demand to facilitate
rapid growth in Atome's hydrogen and ammonia business - both
locally and internationally.
The success of the project is subject, inter alia, to a
satisfactory PPA being signed covering both supply and pricing.
Techco and Atome are co-operating in this regard pursuant to the
agreement now signed.
Whilst at an early stage the progress made by Atome so far is
viewed optimistically as an important first step towards Atome's
business objective. Negotiations are also in progress in relation
to a second new and prospective green hydrogen and ammonia
production business in a European Northern Hemisphere country.
Further information can be found on Atome's separate website:
www.atomeplc.com
Spin-off and new listing on the London Stock Exchange
In parallel with the above, Atome has appointed Strand Hanson as
its financial advisors in relation to the proposed listing of
Atome's shares on the standard list of the London Stock Exchange,
which is currently expected to take place later this year.
It is considered that an aggressively growing and substantive
green energy business is not compatible with the existing business
model of a listed hydrocarbon business with often distinctly
different investor audience and valuation metrics. It is intended
that Atome will, on listing, have a Board with green credentials
appropriate to and reflective of its type of business and the
Company is progressing the appointment of Chief Executive Officer
as well as certain other key management personnel.
In order to recognize the support of existing investors in
President, shareholders on record at a certain date to be defined
will be offered the opportunity to participate in Atome shares on
Listing alongside new investors. Furthermore, in due course,
subject inter alia to valuation, President will have the ability to
declare, as may be appropriate, an in specie dividend/distribution
of shares in Atome to its shareholders.
Background of Hydrogen and ammonia
Hydrogen is a future fuel and whilst its properties have been
known for many years it is now coming into its own as a key
component in the World's toolkit to achieve net zero carbon
emissions by 2050.
When hydrogen is used as a fuel source, the only product is
water. It increasingly powers industrial processes and machinery,
heavy transport vehicles, agricultural equipment and cars. Hydrogen
has significant benefits over batteries including packing much more
punch for the volume allowing longer use and does not use valuable
rare earth materials.
Ammonia, created by interacting nitrogen with hydrogen not only
is the preferred form to efficiently transport hydrogen but in its
own right is used widely and increasingly in the fields of
agriculture, chemical and industrial processes with significant
future potential to power the heavily carbon-emitting marine
industry using green energy.
Currently some 95% of all hydrogen is made through processing
hydrocarbons as part of the process, namely natural gas, oil and
coal. Hydrogen produced from renewable energy is therefore one of
the key components of the holy grail to achieve the objectives of
governments around the World to be carbon zero by 2050.
Peter Levine, Chairman, commented
"The announcement today marks an important development for
President and its group. Our Company must evolve, recognise
investor sentiment and the need to protect the environment. The
commencing of concrete steps together with the intention to spin
off Atome into a separate stock market entity with its own distinct
valuation and investor audience is a radical, bold and
forward-thinking move.
"At President we recognise that the spin-off provides Atome the
most fertile ground to grow exponentially as a distinct entity. We
are optimistic as to the prospects for Atome and see an
increasingly intensive work stream encompassing not just the
initial country in which we have commenced work but others where
management can leverage their extensive networks and
experience.
"The spin-off leaves a still successful President core business
which has created and will retain a major shareholding interest in
Atome with itself significant potential to grow its profits and
cash flow whilst retaining the ability to consider the manner and
course of its future as a publicly listed company. President
investors can be assured that the Company will continue to be laser
focused and committed to its ongoing hydrocarbon projects.
"Thus since the start of the year, President has announced the
successful drilling of three gas wells in Rio Negro, Argentina on
time and budget, the soon to be successfully completed new oil
treatment plant also in that province likewise currently on time
and budget, the soon to start three well drilling programme and
seismic data acquisition in Salta Province, Argentina and the long
anticipated successful farm-out of the high impact exploration
interests in Paraguay with drilling to commence next year.
"Finally, it is important to recognise and respect loyal
shareholders of President and as such we intend as part of the
listing process to invite shareholders on the record at a date to
be defined to participate in the listing of Atome and through, as
may be appropriate, distributions in specie by President in shares
of Atome"
Contact:
President Energy PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@presidentpc.com
finnCap (Nominated Advisor and broker)
Christopher Raggett, Tim Harper
+44 (0) 207 220 0500
Strand Hanson (Financial Advisor
to Atome)
Simon Raggett +44 (0)20 7409 3494
Notes to Editors
President Energy is an oil and gas company listed on the AIM
market of the London Stock Exchange (PPC.L) primarily focused in
Argentina, with a diverse portfolio of operated onshore producing
and exploration assets.
The Company has operated interests in the Puesto Flores,
Estancia Vieja, Puesto Prado and Las Bases Concessions, and
Angostura exploration contract, all of which are situated in the
Rio Negro Province in the Neuquén Basin of Argentina and in the
Puesto Guardian Concession, in the Noroeste Basin in NW Argentina.
Alongside this, President Energy has cash generative production
assets in Louisiana, USA and further significant exploration and
development opportunities through its acreage in Paraguay and
Argentina.
The Group is also actively pursuing value accretive acquisitions
of high-quality production and development assets capable of
delivering positive cash flows and shareholder returns. With a
strong strategic and institutional base of support, including the
international commodity trader and logistics company Trafigura, an
in-country management team as well as the Chairman whose interests
as the largest shareholder are aligned to those of its
shareholders, President Energy gives UK investors access to an
energy growth story combined with world class standards of
corporate governance, environmental and social responsibility.
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRFLFERRDIIVIL
(END) Dow Jones Newswires
July 01, 2021 02:00 ET (06:00 GMT)
Molecular Energies (LSE:MEN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Molecular Energies (LSE:MEN)
Historical Stock Chart
From Jul 2023 to Jul 2024