TIDMMEN
RNS Number : 6658S
Molecular Energies PLC
13 March 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR").
13 March 2023
MOLECULAR ENERGIES PLC
("MEN" or the "Company")
Corporate and Operational Update
Molecular Energies PLC (AIM: MEN), the international energy
Company with both hydrocarbon, and alternative energy divisions
provides a corporate and operational update.
Highlights
-- 2022 Argentine Financial Statements show profit before tax* in excess of US$19 million
-- 19 MMboe Independently assessed net 2P Hydrocarbon Reserves
for Argentina as at 31 December 2022
-- Jordan Coleman named CEO (non board) of the Company's Hydrocarbon division
-- Discussions on the IYA related party debt advancing centered
on reducing interest rate on all outstanding monies to zero,
extending the maturity period and debt reduction
-- Green House joint venture Dual Fuel orders first equipment to
progress development work on first engine
-- Green House, new 100% owned subsidiary HYSO Limited, working
on innovative methods for hydrogen refueling systems for heavy
goods vehicles without expensive refueling apparatus
-- Green House has formed ATON 6 PLC a 100% owned carbon focused
company to capitalize on the Company's businesses, contacts and
experience in relevant carbon related sectors
-- Paraguay exploration well remains on track to spud in May
Argentina 2022 Financial Statements
The auditor reviewed Financial Statements for the full year 2022
of the Company's Argentine subsidiary, President Petroleum S.A
("PPSA") have been filed with the relevant authorities in
Argentina.
The manner of determination of such Financial Statements is as
referred to in the Company's 14 November 2022 announcement of the
Q3 Financial Statements.
The Financial Statements, impacted by the material disruption of
the facilities due to an incident there in H2 2022, include
turnover in excess of US$34 million** and profit before tax* in
excess of US$19 million both converted from Argentine Peso and
inflation adjusted.
Independently assessed Hydrocarbon Reserves as at 31 December
2022
Molecular Energies PLC (AIM: MEN), the international energy
company , provides an update on its Hydrocarbon Reserves in
Argentina as at 31 December 2022 ("the Reserves").
Molecular Energies net Hydrocarbon Reserves in Argentina as at
31 December 2022 has now been independently assessed after taking
into account: production in 2022 and the length of time remaining
on the respective concessions (Rio Negro to 2027/8 and Salta to
2050).
The Reserves that are being filed with the relevant authorities
in accordance with Argentine regulations are as follows:
YE2022 Reserves YE2021 Reserves
(MMboe) (MMboe)
1P 2P 3P 1P 2P 3P
----- ------ ----- ------ ----- -----
Total Argentina 9.5 18.9 26.4 13.5 24.4 34.7
----- ------ ----- ------ ----- -----
The above figures exclude all hydrocarbon resources (not
reserves) including its exploration prospect at the Martinez del
Tineo field, Salta Province, which is intended to be drilled in the
latter part of H2 2023. The reserves are predominantly oil.
Jordan Coleman
The Company is pleased to announce that Jordan Coleman (aged 39)
has been appointed Chief Executive (non board) of Molecular's
Hydrocarbon Division with immediate effect.
Jordan has been with Molecular for 10 years having joined as a
junior field manager progressing through to his more recent role of
COO LatAm. He has demonstrated pragmatic thinking, focus, loyalty,
adaptability, and a determination to succeed.
IYA related party debt ("IYA Debt")
The Company continues in negotiations with regard to the current
level of interest payable by the Group to IYA, a Company ultimately
beneficially owned by Peter Levine, the Company's Chairman and
largest shareholder. The independent directors' objective is
centered on reducing the interest rate applicable on all current
outstanding monies to effectively zero, extending the term of
maturity and reducing the debt level.
While there can be no guarantee that the current subject to
contract negotiations currently underway with IYA will be
satisfactory concluded, the independent directors of the Company
are optimistic that a way forward can be found to achieve their
objectives. It is now expected that a further update will be given
during April.
Green House Capital ("GHC")
The alternative energies division of Molecular has been making
active progress recently:
-- Its joint venture Dual Fuel has made its first order of
equipment to progress its development work on conversion of a
diesel truck engine to run on a mix of hydrogen and diesel.
Discussions in Paraguay with heavy goods vehicle users have
progressed with two fleet users having already volunteered to have
a test conversion using a hydrogen/diesel mix of fuel.
-- GHC has incorporated HYSO Limited, a 100% owned subsidiary
which is now working on an innovative method for refueling heavy
goods vehicles without expensive refueling apparatus.
-- ATON 6 PLC (from the Atomic number six being carbon), has
been formed as a 100% subsidiary of GHC with the decision made to
go straight to PLC status. The nature of ATON 6's business is to
capitalise on its management and associated parties' experience and
contacts in the sphere of carbon investments.
-- The lithium potential in the north of Argentina is still
being assessed and there are no further developments in this
regard.
Paraguay
The exploration well in the Chaco, Paraguay remains on track to
spud in May this year in accordance with the latest published
expectations. The first personnel are already in the field with the
well design settled and the drilling well on paper exercise (DWOP)
with all contractors scheduled for 18 April 2023. All relevant
permissions have been obtained.
Peter Levine, Chairman, commented:
"With the handing over the executive responsibility in the
Hydrocarbon division to my experienced colleague Jordan Coleman, my
attention in Molecular turns to develop our Green House Capital
division.
"In relation to Green House, as was seen previously with ATOME
and now with Dual Fuel, HYSO and ATON 6, each step capitalizes on
and uses as a steppingstone some part of the core assets or
experience of Molecular as a whole and each introduced into the
group to take them to an ultimately independent level in the
fullness of time.
"These are early days so step by step, but the direction of
travel is clear".
Glossary:
*Converted from Argentine peso inflation adjusted and means, in
the context of the report alone, profit after interest, income and
forex operations but before tax, depreciation and amortization
**Converted from Argentine peso inflation adjusted
1P means proven reserves
2P means proven and probable reserves
3P means proven, probable and possible reserves
MMboe means million barrels of oil and oil equivalent (gas)
For further information please visit
www.molecularenergiesplc.com or contact:
Molecular Energies PLC +44 (0)20 7016 7950
Nikita Levine, Investor Relations info@molecularenergiesplc.com
finnCap (Nominated Advisor and
broker)
Christopher Raggett, 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 oil and gas projects to subdivisions in the green and
alternative energy sub-sectors.
The Company has oil and gas production in two geographical
markets: Argentina and the United States, as well as exploration
assets in both Argentina and Paraguay. The Company also 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 under the Green House Capital brand and through AIM
listed ATOME Energy PLC operating in Paraguay, Costa Rica and
Iceland, producing green hydrogen and ammonia for use in fuels.
With a strong strategic and institutional base of support, an
in-country management team as well as the 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 Peter Levine,
Chairman.
-ends-
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