EnergyPathways PLC said that its admission to AIM has put it in prime position to develop the project, as the company eyes a number of ‘strategic milestones’ for 2024.
EnergyPathways, formerly known as Dial Square Investments prior to its reverse takeover of EnergyPathways Ltd in December, is a West Sussex-based company focused on developing the Marram Field offshore gas project in the UK Irish Sea. The project contains up to 35.3 billion cubic feet of undeveloped gas, according to EnergyPathways.
As part of its admission to trading on the AIM market of the London Stock Exchange in December, EnergyPathways raised £2.0 million in gross proceeds from the issue of 50 million new shares at 4.0 pence each.
The company has now said that the proceeds will be used to progress the Marram project to a final investment decision in 2024. The project is fully appraised, and has the potential to be developed into a low-emission project, with first gas anticipated as early as 2025.
The company said that its overarching strategy remains focused on near-term, low emission gas development alongside longer-term energy transition solutions.
EnergyPathways said that these goals will be benefitted by ‘supportive market drivers’ stemming from the UK’s prioritisation of domestic gas to help fulfil Net Zero targets.
The company has its eyes on a number of ‘strategic milestones’ in support of the Marram project in 2024, such as arranging development financing, receiving governmental approval for a field development plan and securing ‘additional low emission gas resources’.
The company secured first right of refusal with an unnamed ‘major subsea equipment provider’ for the purchase of two subsea production trees. Following successful testing and equipment certification, the purchase would expedite development of the Marram project, as the company estimates the manufacture of new trees could take between 18 and 24 months.
The company also submitted an interim environmental statement to the UK’s offshore petroleum regulator for consultation with relevant authorities, which it said received ‘favourable feedback’. EnergyPathways now intends to undertake a navigation risk assessment to prepare the project for full environmental approval.
The company said it had received expressions of interest and offers regarding development financing for the Marram project. It intends to progress discussions in the near-future, and claimed that the ‘attractive economics’ of Marram make it an ideal candidate for debt financing, which EnergyPathways estimates could cover some 70% of the development capex.
Remarking on the company’s progress, Chief Executive Officer 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.’
Shares in EnergyPathwways were up 5.2% at 3.84 pence each in London on Tuesday morning.
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