Oracle Power reports solid development progress in fourth quarter

15th Jan 2024 14:45

(Sharecast News) - Oracle Power updated the market on its activities during the fourth quarter of 2023 on Monday, reporting significant progress in its development projects.

The AIM-traded firm said it continued to advance its strategy aimed at delivering a robust portfolio of development opportunities.

Key highlights included substantial advancements in the green hydrogen project in Pakistan, with the power feasibility study near completion and being integrated with the green hydrogen and green ammonia feasibility study, which was received in the third quarter.

Additionally, an ongoing grid interconnectivity study was expected to be finalised in the first quarter of 2024.

The board said the green hydrogen project had also achieved an important milestone by successfully registering under the Verified Carbon Standard programme with Verra.

It said the association allowed the project to issue Verified Carbon Units, enhancing project financing prospects.

Furthermore, Oracle Power presented the green hydrogen project at the Dii Desert Energy Leadership Summit in Dubai, engaging with senior international energy project developers and lenders.

Positive discussions regarding offtake and financing were held at COP28, with further updates anticipated as the project progresses.

In another significant development, Oracle Power said its farm-in partner Riversgold reported highly encouraging exploration results from the Northern Zone Project.

Drill results confirmed the previously announced exploration target of 200 million to 250 million tonnes with a grade of 0.4 to 0.6 grams of gold per tonne, translating to 2.5 million to 4.8 million ounces of contained gold.

The latest drilling identified gold intercepts over 100 metres wide, reaffirming the style, widths, grades, and structural orientation of gold mineralisation.

A new programme of works was expected to be submitted soon, with plans to deliver a maiden mineral resource estimate in 2024.

"Oracle is rapidly pursuing and extending its objective to build a portfolio of project development opportunities, with both our green hydrogen and Western Australian gold interests being key pillars of this strategy," said chief executive officer Naheed Memon.

"I am encouraged by the work and results that have been demonstrated at our Northern Zone Project, and we hope that this will become a model for us to replicate in the future.

"Similarly, our green hydrogen interests, which are being advanced in joint venture with His Highness Sheikh Ahmed Dalmook Al Maktoum, continue to move forward promisingly, including the recent registration of the project under the Verified Carbon Standard programme with Verra.

"His Highness and I were also extremely active during the Dii and COP28 Conferences and we continue to work towards finalising off-takes."

Memon said one of the firm's prospective off takers, EGA, was expected to finalise its off-take commitments at COP28, but since its decarbonisation programme had not yet been finalised, that would be addressed after its internal strategy was firm.

"COP28 was an important trigger for a quicker global energy transition, given the commitment made to move away from oil and gas.

"We expect that this shift will translate into greater financial support, more conducive government policy and firm decarbonisation commitments by industry across the globe."

At 1147 GMT, shares in Oracle Power were down 3.08% at 0.03p.

Reporting by Josh White for Sharecast.com.