TIDMEPP
RNS Number : 8347Z
EnergyPathways PLC
16 January 2024
16 January 2024
EnergyPathways plc
("EnergyPathways" or the "Company")
Corporate Update
EnergyPathways plc (AIM: EPP), an integrated energy transition
company, is pleased to provide the following update regarding its
wholly owned and operated Marram Field project (the "Marram
Project") and strategic objectives for 2024.
Investment Highlights
-- EnergyPathways was admitted to AIM on 20 December via a
reverse takeover transaction with Dial Square Investments plc
-- Proceeds of the GBP2m equity raise to be used to progress the Marram Project to FID in 2024
-- The Marram Project is a fully appraised low emission gas
field in the UK Irish Sea containing up to 35.3 Bcf of undeveloped
gas 2P Reserves and 11 Bcf of 2C Contingent Resources in
high-quality reservoirs
-- The Marram Project has potential to be developed as a short
cycle low emission project with first production potentially as
early as 2025
-- Focused strategy based around near-term, low emission gas
development and longer-term energy transition solutions
-- Supportive market drivers underpinned by the UK's
prioritisation of domestic gas to support Energy Security and
Energy Transition to Net Zero
Strategic Milestones for 2024
In support of its strategic objectives, the Company is
progressing a number of interrelated commercial and technical
workstreams in support of a Marram Project FID , which the
Directors of the Company anticipate may be as early as in 6-9
months' time, as follows.
-- securing certain long lead items for development;
-- results from tie-back optimisation studies
-- pre-FEED and FEED completion;
-- Field Development Plan (FDP) Government approval;
-- Project FID;
-- Environmental Statement and approval;
-- arranging development financing (debt and equity);
-- UKCS 33(rd) licensing application and]"Out of Round" licence requests;
-- securing additional low emission gas resources; and
-- establishing low carbon technology partnerships
Recent Developments
The Company has secured a first right of refusal with a major
subsea equipment provider to purchase two subsea production trees.
The Company is going to progress with equipment certification and
testing of the trees. This arrangement will remove a major critical
path item from the Marram Project schedule, noting that the
manufacture of new subsea trees in the industry is estimated to
take 18-24 months.
EnergyPathways submitted an interim Environmental Statement to
OPRED for consultation with relevant local, regional and national
authorities and favourable feedback was received from OPRED. Due to
the high shipping levels of the region, a Navigation Risk
Assessment is necessary and will now be undertakento prepare the
project's final Environmental Statement for OPRED approval, which
is expected to take approximately two months. The Company believes
it is well positioned to meet the Environmental Statement approval
strategic milestone in line with its objectives.
In parallel with these operational milestones, management
continues to assess optionality with regards to the development
financing of the Marram Project. In this regard, the Company has
received expressions of interest, including term-sheet offers, and
will seek to progress those discussions in the near-term. The
attractive economics of the Marram Project, make the project
appropriate for debt financing, with management estimating that in
the order of 70% of the development capex could be funded through
such a facility.
With regard to business development, EnergyPathways awaits the
result of its 33(rd) licensing round application for an additional
licence,. The Company notes recent confirmation from the NSTA that
it expects to announce the awards of the 33(rd) Licencing Round
during Q1 2024.
Commenting on the outlook, CEO Ben Clube said:
"With our AIM admission concluded a few weeks ago, our full
focus has turned towards the operational milestones that will
define this year and generate material long-term value for our
stakeholders. Our intention is to progress the Marram Project
towards FID and we are progressing the various commercial and
technical workstreams to achieve that critical value-catalyst. The
economics of the project are very attractive and the fundamental
market drivers for the development of the Marram Project remain
compelling - both of which provide confidence that we will achieve
FID in the timeframe set out during the IPO process.
We are presently engaged in evaluating tie back options for the
development that best position the Company for the development of
the broader regional potential. We are in progressive discussions
regarding development financing arrangements and are encouraged by
the reaction of counterparties who recognise the strong cash flow
profile and rapid payback of the project. In parallel, we continue
to screen opportunities to build materiality and scale, and hope to
receive positive news in the coming months regarding the Marram
Project lookalikes that we have bid for in the 33(rd) licencing
round, as we seek to capitalise on our early mover advantage in UK
Irish Sea, a region with numerous undeveloped gas discoveries,
existing infrastructure and the ability to support the UK's
objectives in terms of Energy Security and Transition. We look
forward to communicating our progress to the market as we achieve
the numerous core operational milestones set out today."
Strategic Overview
On 20 December 2023 the Company concluded its reverse take-over
transaction with Dial Square Investments plc, and IPO and was
admitted to trading on AIM as EnergyPathways plc, under the ticker
EPP.
EnergyPathways was the only energy company admitted to AIM in
2023 and the Board believes that this success, which was achieved
despite extremely challenging market conditions, reflects the
substantial potential value that the Company's strategy can create
for its shareholders.
The macro factors that underpin the attractiveness of the
Company's strategy continue to develop favourably with
ever-increasing recognition in the UK, across Government, among
regulators, energy consumers and the investment community, all of
which recognise the inescapable fundamental that UK domestic gas
will have a critical role to play in the UK's energy mix for
decades to come and that the expansion of the UK gas sector is
essential to providing energy security and delivering on the
nation's net zero commitments.
EnergyPathways is well positioned to contribute to delivering on
the exceptional growth in this expanding energy arena both in the
near term and long term. The Company's foundation gas asset, the
100% owned Marram Project, is a field that is fully appraised,
"development ready" and has the potential to generate high rates of
return and significant value for shareholders in the near term. The
Company is targeting similar low emission energy assets for
development that can be dedicated to supplying the UK market with
low emission domestic gas, offsetting the significantly higher
emissions of imported LNG, and so provide the UK with much needed
energy security, while also contributing a more environmentally
beneficial solution for the nation's energy requirements.
The Company has a "first mover advantage" in the East Irish Sea
region, a region that has substantial overlooked low emission gas
accumulations, based on EnergyPathways' estimates, of over 2 Tcf.
This region has significant potential to integrate its untapped gas
resources with energy transition opportunities and energy
infrastructure contained within the region. These include the
nearby hydrogen hubs, extensive carbon capture and storage
reservoir capacity under development. Regional gas production can
also be used to compliment the significant and currently
under-utilised renewable wind generating capacity of the region, by
providing long duration energy storage, hydrogen production and
back up low emission powergen.
To this end, the Company is pleased to see that the UK
Government continues to progress its plans for UK licences for oil
and gas projects in the North Sea to be awarded annually in the
future.
Enquiries:
EnergyPathways Tel: +44 (0)207 466
Ben Clube / Ben Hodges 5000, c/o Buchanan
(Financial PR)
Email : info@energypathways.uk
Cairn Financial Advisers LLP (Nominated Tel: +44 (0)20 7213
Adviser) 0880
Jo Turner / Louise O'Driscoll / Sandy
Jamieson
Optiva Securities Limited (Joint Broker) Tel: +44 (0)20 3137
Christian Dennis / Daniel Ingram 1903
Global Investment Strategy UK Limited Tel: +44 (0)20 7048
(Joint Broker) 9000
Callum Hill / James Sheehan
Buchanan (Financial PR) Tel: +44 (0)207 466
Ben Romney / Barry Archer 5000
Email: energy@buchanan.uk.com
For further information on EnergyPathways visit
www.energypathways.uk and @energy_pathways on X (formerly
Twitter).
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the timing and granting of
regulatory and other third party consents and approvals,
uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of
unexpected events.
Actual results achieved may vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors.
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