Last checked at 11 Jul 2022 12:30
11 July 2022
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Q2 Update and Shareholder Q&A Session
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 Q2 2022:
"This quarter has built on and consolidated developments made in Q1 across the Company's increasingly diversified portfolio of power and natural resources assets. The Northern Zone Gold Project in Western Australia ("Northern Zone") has demonstrated further excellent results, with gold recoveries of up to 94.7% after 24 hours from metallurgical test work. Oracle has also continued to advance its projects in Pakistan in both its conventional power interests and new venture into clean energy. This work in Pakistan has included several key agreements, including a non-binding Memorandum of Understanding ("MoU") with both Jiangsu Guofu Hydrogen Energy Equipment Co., Ltd ("Guofuhee") and Nuvera Fuel Cells LLC ("Nuvera"), helping to advance Oracle's pioneering development of a green hydrogen project in Pakistan. We are also engaging with the provincial government for the necessary regulatory permissions, and with potential end-users in Pakistan, South Korea and China. The Company has also entered into advanced conversations with technology suppliers and equipment manufacturers in order to assess optimal technology given expected usage and markets.
"The Government of Pakistan's concern with energy security has resulted in a renewed interest in, and support of, indigenous power projects including both clean and conventional forms of energy production. Indeed, post period end in July, a new 'Committee on Coal Development' was established by the Prime Minister of Pakistan to explore avenues for the development of the coal mining industry, and I was delighted to be invited to join this committee, alongside other experts in the sector. Together we will be working to assess the various routes through which to maximise the value of Pakistan's indigenous coal assets, in a sustainable and responsible way, for the benefit of all stakeholders. The first consultative meeting of the Committee was held on 1 July 2022, and further meetings are expected in due course, which will focus specifically on coal-to-gas and coal-to-liquids.
"Looking now at the Company's achievements during the quarter, the main breakthrough developments were delivered by Oracle Energy Limited, the Company's green hydrogen focused joint venture company with Kaheel Energy FZE, which is wholly owned by the Private Office of His Highness Shaikh Ahmed Dalmook Al Maktoum. The quarter began with a successful fundraising of £800,000 to accelerate the advancement of the green hydrogen project through the joint venture, and this was swiftly followed by the signing of two MoUs with industry specialists. Oracle Energy continues to receive funding from Kaheel Energy, in line with the terms of our joint venture agreement, and together we continue to grow the company in value.
"The first of the two MOUs was with Guofuhee, specialists in hydrogen storage and refuelling stations. Cooperation with Guofuhee would provide refuelling solutions for domestic power provision and enable the joint exploration of hydrogen storage solutions, which would facilitate the delivery of Oracle's green hydrogen to international markets including South Korea, Japan, China and Europe.
"Likewise, the MoU with Nuvera will help with the commercialisation of green hydrogen. Utilising Nuvera's expertise in hydrogen-powered vehicles, Oracle and Nuvera will jointly explore the possibility of hydrogen-powered heavy-duty transport and port infrastructure in Pakistan, including coordinating with the Sindh and Pakistan governments to obtain support from them.
"The signing of the two MoUs during the quarter thus represents an important step towards realising Oracle's 400MW green hydrogen project and its aim to be the first company to commercialise green hydrogen in Pakistan.
"Moving now to our interests in Australia, the most recent metallurgical tests for Northern Zone, received in June, produced highly positive results from three samples indicating an average gold recovery of 92.9% over 24 hours, with a maximum individual recovery from one sample of 94.7% after 24 hours, and an average drill head grade of 0.79 g/t of gold ("Au"). These excellent results look promising as we look to unlock the full value of this asset, which has a previously announced Exploration Target of 200-250Mt at 0.4-0.6g/t Au 2.5-4.8 Moz gold. Consequently, the 82-hectare site at the Northern Zone, 100% owned by Oracle, has become the Company's main focus in Australia and we are assessing various opportunities to support the project's development, including through a joint venture structure.
"Oracle thanks its shareholders for their continued support during Q2 and looks forward to having further progress to share as our projects continue to advance in Q3."
The Board of Oracle would like to advise shareholders that Naheed Memon, CEO of Oracle, will be conducting a shareholder presentation and Q&A session via the Investor Meet Company platform on 15 July 2022 at 10:30am BST.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation. There is no guarantee that all questions will be discussed on the call given time limitations and/or specific sensitivities with respect to operations.
Investors can sign up to Investor Meet Company for free and add to meet ORACLE POWER PLC via:
https://www.investormeetcompany.com/oracle-power-plc/register-investor
Investors who already follow ORACLE POWER PLC on the Investor Meet Company platform will automatically be invited.
*ENDS*
For further information:
Oracle Power PLC +44 (0) 203 580 4314
Naheed Memon - CEO
Strand Hanson Limited (Broker & Nominated Adviser) +44 (0) 20 7409 3494
Rory Murphy, James Harris, Rob Patrick
St Brides Partners Limited (Financial PR) +44 (0) 20 7236 1177
Susie Geliher, Selina Lovell
About Oracle Power PLC:
Oracle Power PLC is an international natural resource and power project developer quoted on London's AIM market. The Company currently has two areas of focus: Western Australia and Pakistan. The Company is active in the energy industry in Pakistan and is working to establish a green hydrogen production facility through Oracle Energy Limited, a joint venture with His Highness Shaikh Ahmed Dalmook Al Maktoum. The Company's initial project is the Thar Block VI Project in south-east Pakistan where the Company is advancing plans for a combined lignite coal mine, a 1,320MW mine mouth power plant and a proposed coal gasification to urea project.
In Australia, its primary focus is the Northern Zone Gold Project, located 25km east of the major gold mining centre of Kalgoorlie, the home of the 'Super Pit' mine, the second largest gold mine in Australia. Northern Zone has a current Exploration Target of 200-250Mt at 0.4-0.6g/t Au for between 2.5 - 4.8Moz gold, with drilling being planned to define a maiden inferred JORC resource.