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RNS Number : 1670B
Oracle Power PLC
18 September 2018
 

18 September 2018

 

 

 

ORACLE POWER PLC

("Oracle" or the "Company" or the "Group")

 

 

Shareholder Update

 

 

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

 

An orderly transition of power followed the general election in Pakistan in July and the Company has been encouraged by recent confirmation of the new government of their support for indigenous coal-fired power generation in Pakistan, ie coal development in the Thar desert.  At a recent China Pakistan Economic Corridor ("CPEC") review meeting led by the Pakistani Minister of Planning and Development, attended by the Chinese Ambassador to Pakistan, support was affirmed for priority list energy and infrastructure projects, of which Oracle's project in Thar Block VI is one.

 

The Company advises that following the announcement of an equity placing on 3 August 2018, a balance of £85,000 in subscription funds remain outstanding.  The Company has been advised that these funds relate to the delayed settlement by two parties, both of whom are existing shareholders, and both of whom have recently reconfirmed their intention to settle at the placing price of 1.00 pence per share. The delays have stemmed in part, from currency control issues; Brandon Hill Capital Limited ("BHCL") and the Company expect this to be resolved in the near term.  Furthermore, BHCL, the Company's broker and major shareholder, which combined with its related parties currently owns 22.36% of the issued share capital of the Company, has confirmed it will subscribe on the same placing terms in the event there is any subsequent shortfall in the settling of the placing.  With all of the other placing proceeds already received the Company has sufficient working capital into early 2019.

 

Shahrukh Khan, CEO of Oracle, said:

"I am pleased that the new Government of Pakistan has affirmed its support for the development of Thar based coal power projects, and also that China's support for CPEC priority list projects continues.   I look forward to providing an update in the near term on the progress of work under the Memorandum of Understanding signed in 2017 with our Chinese partners as the Company looks to move into the next phase of work."

 

 

 

 

For further information please contact:

 

Oracle Power PLC

Shahrukh Khan

 

+44 (0) 203 580 4314

Brandon Hill Capital Limited

Oliver Stansfield

 

+44 (0)203 463 5000

Peterhouse Corporate Finance

Charles Goodfellow

 

+44 (0)20 7220 9791

Grant Thornton UK LLP

Samantha Harrison, Richard Tonthat

 

+44 (0) 207 373 5100

Blytheweigh                                                  

Tim Blythe, Camilla Horsfall, Megan Ray 

 

+44 (0) 207 138 3204

Fortbridge Consulting                                                  

Matt Beale, Bill Kemmery

 

 

+44 (0)7966 389196

 

 


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