25 October 2021

PRESIDENT ENERGY PLC

("President" or the "Company")

Announcement made by Atome Energy PLC

President Energy (AIM: PPC), the energy company with a diverse portfolio of energy assets provides an update in relation to its subsidiary Atome Energy PLC

Announcement by Atome Energy PLC

President notes the public announcement made today by Atome Energy PLC ("ATOME") its green hydrogen and ammonia production company, the text of which is set out in full below.

Steps continue to be made with regard to the spin-out of ATOME from the Company and the intended separate flotation of ATOME on the AIM market of the London Stock Exchange. It is expected that further announcements will be made during the course of November both in respect of ATOME and also the referred to dividend in specie in respect of President's shares in ATOME. 

Peter Levine, Chairman, commented

"The significant steps being taken with ATOME is just one of the group's workstreams which include the day to day running of our production business, the progressing to a conclusion of the farm-out in Paraguay and the drilling of a minimum of three new oil wells in Salta Province, Argentina

"Mindful of the need not to drop any of the balls currently in the air, with our work teams we maintain focus and ensure each of them will be brought to a successful conclusion.

"In relation to ATOME, this is a very exciting company with projects having special advantages benefiting from experience and in country management. We believe that in what we are doing we have a venture which in material ways sets us apart from the rushing herd in hydrogen and ammonia and is a real value creator. I commend investors to consider the announcement made by ATOME and stand by for further announcements in due course"

The text of Atome Energy PLC public announcement is as follows

ATOME ENERGY PLC

A GREEN HYDROGEN AND AMMONIA UK BASED COMPANY WITH AN INTERNATIONAL STRATEGY INTENDS TO FLOAT ON AIM THIS YEAR

350MW Capacity Projects in Europe and the Americas

ATOME ENERGY PLC ("ATOME" or the "Company"), headquartered in Leeds, UK, focussed on the large-scale production of green hydrogen and ammonia, announces its intention to seek admission to trading on the AIM market of the London Stock Exchange later this year.

Background

Green Hydrogen (and Ammonia) has been described as the "Swiss Army Knife" of energy, providing solutions for future zero emissions particularly the harder to de-carbonise sectors of heavy transport, marine and industry which have been struggling to address green energy issues through alternative means.

With material increases in the cost of fossil fuels, large scale production of green hydrogen (ie made with energy from green renewable sources) is expected to be more cost competitive compared to the forms of hydrogen produced from hydrocarbon sources.

ATOME highlights

·      An international company, headquartered in Leeds, UK, targeting the multi-trillion-dollar potential of green hydrogen and ammonia

·      Objective of commencing first phase production by end 2023

·      Two geographically spread projects ramping up to 350MW capacity mid decade

·      ATOME to be spun-out from AIM-listed President Energy Plc ("President"), an oil and gas company which has incubated and financially supported ATOME to date

·      Prior to flotation intends that President's entire institutional and private client shareholder base of circa 600 investors will become shareholders in ATOME by way of a dividend in specie

·      President's main shareholders have informally indicated their support to the contemplated spin-out, dividend in specie and flotation

·      ATOME's planned large-scale 350MW projects are situated in Iceland and Paraguay, both countries having available baseload green generated electricity on tap 24/7

·      Key MOUs and Co-operation Agreements are already in place with Power Purchase Agreement discussions advancing

·      Green credentials for main Board of Directors with local management and subsidiaries in place

·      ATOME can access of President's proven engineering and infrastructure expertise

·      Initial raise planned at time of Admission to take ATOME to final investment decision (FID)

ATOME's advantages

·      Strong government support available in its project areas with existing supply of baseload green electricity (hydro and geothermal) 24/7 coupled with a supportive fiscal environment

·      Land and water resources identified, and in-principle procured near originating power sources (low transmission costs) with access to transportation

·      Available domestic-end markets with export potential in EU and Mercosur countries

·      ATOME is technologically agnostic, and can take advantage of improved technology and lower equipment prices in the future as more equipment suppliers come on the scene

·      Experienced local management teams with operating subsidiaries established in both Iceland and Paraguay

Market flotation

ATOME intends to seek admission to the AIM market of the London Stock Exchange towards the end of this year with Beaumont Cornish as Nominated Adviser (Nomad), finnCap as Broker, Crowe LLP as Reporting Accountants and Fieldfisher as Lawyers to ATOME.

On IPO, to complement the intended circa 600 President shareholders who would hold shares in ATOME directly following the above intended dividend in specie, ATOME is planning a limited equity raise to support progress to FID in each of its two current projects targeted before the end of next year.

The ATOME Board

ATOME's Board includes:

The CEO of ATOME, a European national, to be named when the individual joins on 1 November 2021, is recognised as a well-known expert in the green and traditional energy sectors, with particular emphasis on strategy, equity and finance, currently occupying a senior position within the largest global development finance institution.

Mary-Rose de Valladares a US national, who was the longstanding General Manager of Hydrogen at the International Energy Agency and a recognised and well-known expert and spokesperson on green hydrogen and ammonia.

James Spalding a Paraguayan national was for 5 years until 2018 the Paraguayan General Director of Itaipu ("Itaipu") the binacional hydroelectric dam, being the second largest in the world and jointly owned by Paraguay and Brazil and on the border of those countries and Argentina. Formerly a Minister of Finance in Paraguay and Ambassador to the United States of America.

Peter Levine, Chairman, a Swiss resident, is the current Chairman and 29.4% shareholder of President Energy Plc. Formerly the founder and largest individual shareholder throughout its life of the FTSE 250 company Imperial Energy Corporation Plc sold to ONGC of India for US$2.4bn in 2008. Formerly Peter also was for many year the Chairman of the then FTSE 250 company Severfield-Rowen Plc as well as Keltbray Plc.

ATOME's projects

Iceland

ATOME has a 75% beneficial interest in Green Fuel ehf, an Icelandic company with experienced local management.

Iceland, a member of the European Economic Area, powers itself through hydro and geothermic sources with the availability of baseload electricity for ATOME's planned requirements. Green Fuel has taken significant steps in progressing its hydrogen and ammonia project in Iceland including advancing discussions and memoranda of understanding with key players for power, land and water forming the route map towards full definitive agreements.  Green Fuel is targeting delivering FID by end 2022 with initial production planned for end 2023 / early 2024 and building up production thereafter from 30MW to 100MW.

The choice of location of Iceland and of Green Fuel's project is in full alignment with the Hydrogen and E-Fuels road map for Iceland and it reflects Iceland's own domestic needs. It's focused pursuit of hydrogen, and the nearby growing EU market, including availability of subsidies and grants make Iceland an ideal place to manufacture green hydrogen.

Paraguay

ATOME is the beneficial owner of Atome Paraguay S.A. led by James Spalding.

ATOME has entered into a Memorandum of Understanding with the Paraguayan innovation arm of Itaipu Technology Park for the future location of its planned 250 MW green hydrogen and ammonia facility approximately 1km from the Itaipu dam itself, adjacent to water and with transport access.

ATOME intends that production will be ramped up from an initial 50 MW unit commencing end 2024 with significant potential local end markets. All goods are carried by road or barge in Paraguay and the country is a significant user of fertiliser to support its large agrarian economy. As a member of Mercosur and with Itaipu bordering Brazil and Argentina with river access to the ocean through to Buenos Aires, international export markets are also available.

The project is aligned, among others, to Paraguay's Green Hydrogen Roadmap and decarbonization goals established in its National Development Plan 2030, as well as the objectives in the country's Nationally Determined Contributions (NDC) within the framework of the Paris Accord.

Further details on ATOME and its projects will be given nearer the time of flotation but in the meantime for additional information please visit www.atomeplc.com or contact info@atomeplc.com 

- Ends -

 Contact:

Notes to Editors

President Energy is an oil and gas company listed on the AIM market of the London Stock Exchange (PPC.L) primarily focused in Argentina, with a diverse portfolio of operated onshore producing and exploration assets.

The Company has operated interests in the Puesto Flores, Estancia Vieja, Puesto Prado and Las Bases Concessions, and Angostura exploration contract, all of which are situated in the Rio Negro Province in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. Alongside this, President Energy has cash generative production assets in Louisiana, USA and further significant exploration and development opportunities through its acreage in Paraguay and Argentina.

President has as one of its subsidiaries, Atome Energy PLC, a hydrogen and ammonia production company.

The Group is also actively pursuing value accretive acquisitions of high-quality production and development assets capable of delivering positive cash flows and shareholder returns. With a strong strategic and institutional base of support, including the international commodity trader and logistics company Trafigura, an in-country management team as well as the Chairman whose interests as the largest shareholder are aligned to those of its shareholders, President Energy gives UK investors access to an energy growth story combined with world class standards of corporate governance, environmental and social responsibility.

This announcement contains inside information for the purposes of article 7 of Regulation 596/2014