Q1 Argentina Financial Results & Corporate Update

Molecular Energies PLC

06 June 2023

 

6 June 2023

Molecular Energies PLC

("Molecular" or the "Company")

Q1 Argentina Financial Results

Corporate Update

Molecular Energies PLC (AIM: MEN), the international energy company announces key highlights from the independently reviewed results from the first three months of the year to 31 March 2023 ("Q1") in Argentina in accordance with Argentine reporting rules as well as a corporate update.

Q1 Argentina Financial Results

Pursuant to the Mini-Bond issued last year and announced in November 2021 and extended earlier this year, Molecular's Argentina subsidiary, President Petroleum S.A ("PPSA"), as stated in the Company's announcement on 13 May 2022, is obliged to file auditor reviewed results in Argentina for each calendar quarter.

The results of PPSA for the first three months of the year to 31 March 2023 have been reviewed by Crowe, the Molecular Group auditors, and filed with the relevant Argentine authorities. The results have been determined under Argentine GAAP rules. Such filing does not relate to Molecular Group as a whole, only PPSA. The difference in accounting standards will produce anomalies in the various versions of the accounts.

The Q1 2023 Argentina Financial Report, converted from Argentine Pesos into United States Dollars show for the first three months of 2023 inter alia a turnover in excess of US$8.6 million and EBITDA* for the first three months of 2023 of US$2 million. EBITDA for Q2 2023 is currently expected to show a solid increase over the first quarter.

Argentina Production

Production in Argentina continues to improve as further work on the Rio Negro facilities is made to allow ramping up to full capacity. The new wells successfully drilled in Salta in 2022 are all contributing profitably. The workover campaign in Q1 of this year has also been successfully completed with all wells now on line and producing again. A new frac campaign is planned in Rio Negro for August which if successful on the first well will extend to a total of 4 wells.

A high-impact exploration well at the Martinez del Tineo field in Salta Province is still planned for towards the end of this year subject to rig availability.

Paraguay

Progress continues in relation to the high-impact Tapir exploration well in the Pirity Concession, currently on track for the revised spud date of the end of the first week of July. By way of reminder, this is targeting the Delray complex of prospects, estimated by the Company to contain in aggregate over 260 mmbbls of P50 unrisked resources, with a chance of success of 17%.

Atome Energy PLC ("Atome")

Molecular Energies is pleased to note the announcement made on 22 May regarding Baker Hughes, the international services and technology company, taking a significant stake in Atome. The origination and spin-out of Atome from Molecular has proved to date to be a great success with Atome going from strength to strength and having in Molecular's view exciting prospects ahead.

Molecular retains an interest of 22.5% in Atome whose value has grown from foundation two years ago as a £50,000 share capital company under Molecular to an independent public company with a market capitalisation now of approximately US$50 million.

Annual Accounts 2022

It is anticipated that the Company will publish its annual report and accounts for the year ended 31 December 2022 in the last week of June which will contain an operational update on Molecular's hydrocarbon division as well as a progress report on the Green House Capital Division of the Company.

Glossary

*EBITDA is earnings before interest, tax, depreciation and amortisation.

Contact: Molecular Energies PLC	[phone]
Nikita Levine, Investor Relations	[e-mail]
finnCap (Nominated Advisor and broker) Christopher Raggett, George Dollemore	[phone]
Tavistock (Financial PR & IR) Simon Hudson, Nick Elwes, Charles Baister	[phone]

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 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.

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