MEN.L Regulatory News (MEN)

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:

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.

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