Oracle Power Plc (LSE: ORCP) is an AIM listed company whose principal activity is the exploration and development of a lignite coal resource project in Pakistan.
Oracle Power (previously known as Oracle Coalfields Plc) was originally admitted to trading on the PLUS-quoted market in August 2007 before being admitted to AIM in April 2011 when it raised £3 million in new equity, by placing 30 million ordinary shares at a share price of 10 pence each.
Following the admission, the market capitalisation of the company was £21.4 million.
In November 2020, Oracle Power had 2.086 billion ordinary shares in issue and the ORCP share price was 0.625 pence, giving it a market cap of c. £13 million.
Overview of the company’s assets
Oracle Power acquired the licence to explore Block VI in the Thar desert, located the Sindh province in Pakistan. The mine is understood to contain a JORC resource estimate of 1.4 billion tonnes of lignite quality coal.
The company has formed a consortium to progress the project which comprises the development of an open-pit coal mine; construct, own and operate a 1,320MW mine-mouth power plant, and a coal-to-gas liquid facility.
Oracle’s equity interest in the project has been agreed at 12% (subject to definitive agreement on Financial Close) and the company is currently awaiting the required permits, licenses, governmental and regulatory approvals.
Block VI has been deemed a “Priority Project” under an energy development initiative signed between the governments of Pakistan and China under the China-Pakistan Economic Corridor (“CPEC”) which also includes the gasification of coal into fertiliser.
In October 2020, ORCP released its Interim Results for the 6 months to 30th June 2020 and confirmed that it held cash of £688k, non-current assets were £5.088 million (mostly intangibles) and net assets (equity) amounted to £5.699 million.
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