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 [email protected].
There is no guarantee that all questions will be discussed on the call given time limitations and/or specific sensitivities with respect to operations.
For further information:
Oracle Power PLC
Naheed Memon – CEO
+44 (0) 203 580 4314
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