Operational Update

RNS Number : 1527B

Oracle Power PLC

05 June 2019

 

5 June 2019

Oracle Power PLC

("Oracle" or "the Company")

Operational Update

Oracle Power PLC (AIM:ORCP), the UK energy developer of a combined lignite coal mine and mine mouth power plant located in the south-eastern Sindh Province of Pakistan (Thar Block VI) (the "Project"), today provides an update on recent operational developments.

Since the original announcement on 20 December 2018 of a Memorandum of Understanding ("MOU") between Oracle, Beijing Jingneng Power Company Limited ("Beijing Jingneng") and PowerChina International Group Limited ("PowerChina") (together the "Parties"), the Parties have been in regular discussion on how the Project might be further optimised. Based on work completed to date the Parties have now decided to develop the mine in a single phase of 8 million tonnes a year, instead of the original and ultimately more capital intensive two-phased approach, being 4 million tonnes a year initially followed by a second phase of a further 4 million tonnes a year.  Consequently, the power plant is now also intended to be developed as a single 2x660 MW unit and an application has been submitted to the Private Power Infrastructure Board on this basis. The required feasibility work relating to this refinement is being assessed with a view to determining not only the optimal revised mining plan, but also the most suitable configuration of the mine and power plant to minimise the costs of the development.  As part of these enhancements to the Project, Oracle is also in the process of updating the requisite Environmental and Social Impact Assessments.

In addition the Company can confirm that it has received £50,000 from Brandon Hill Capital Limited, being the initial drawdown amount under the loan agreement, as announced on 30 May 2019. 

Naheed Memon, CEO of Oracle, said :

"Progress is being made with our partners as we look to optimise the Project economics and minimise the ultimate capital required for the full development. I look forward to updating the market on further progress." 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please contact:

Oracle Power PLC Naheed Memon	[phone]
Strand Hanson Limited (Nominated Adviser) Rory Murphy, James Harris, Jack Botros	[phone]
Brandon Hill Capital Limited Oliver Stansfield	[phone]
Peterhouse Corporate Finance Charles Goodfellow	[phone]
Blytheweigh                                                   Tim Blythe, Camilla Horsfall, Megan Ray	[phone]

 

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