Final results highlight operational progress

Hydrogen Utopia International (HUI), the waste plastics to hydrogen company, has released its final results for the year ending 31 December 2021. While the financial results are not too material, the announcement highlights how the company, over the past year, is transforming into a fully-fledged business. HUI is developing its technology and building a potential project pipeline, and the current year should see the company make further progress in both of these areas.

Final results highlight operational progress

Petro Matad has issued an operational update. It would appear that the recent Covid lockdowns in China have had a knock-on impact on the company’s operations in Mongolia. While this is a temporary problem, management is moving ahead with the completion of the Heron-1 discovery well into a producing well, which will allow the company to start generating cash flow once the situation in the region returns to normal.

Operational Update

Hydrogen Utopia International (HUI) has announced that it has reached an agreement with Trifol Resources Limited (TRL) to look at constructing a full-scale waste plastic to hydrogen plant in the Republic of Ireland. As part of the agreement, HUI will invest €0.5m for a minimum stake of 3.33% in TRL on a fully diluted basis. We believe that this is an exciting move for HUI and could lead to the company’s first operating full-scale waste plastic to hydrogen plant, as well as potentially benefitting from synergies with TRL’s waste plastic to wax technology.

Proposed move into Ireland

Petro Matad issued a trading update in December highlighting that the company is on track for its target of starting production at its Heron oil discovery in Mongolia in the middle of 2022. The Heron field is located in Block XX, where the company has a 100% working interest. This production will allow Petro Matad to start generating cash flow, which will give the company the funds required to accelerate its anticipated work programme.

Promising outlook for 2022

Hydrogen Utopia International plc

Echo Energy plc

Petro Matad Ltd

Sound Energy plc

Petro Matad has now completed its financing which has raised approximately US$10.5 million. This will give the company sufficient funds to start the initial development phase of the Heron field in Block XX in Mongolia where it currently has a 100% working interest. We believe that this fundraise leaves the company in a stronger position. Although the company is still looking for a partner, Petro Matad can now move ahead on its own regardless of whether or not an acceptable agreement is reached. While noting the improved financial position, we are reducing our RENAV to 22.5 p/share from 28.7 p/share to reflect the fundraising.

Completed fundraise provides flexibility

Petro Matad is a Mongolian focused E & P company which is anticipating a step change in its operations now that it has secured the Exploitation Licence for its Heron-1 oil discovery from the Mongolian authorities. The company is now making plans to start an early development in 2022 from which it can generate cash flow. This will then be utilised to proceed with a staged full field development and then allow the company to execute an exploration programme. This has the potential to add significantly to asset valuation.

The Hoards of Mongolia

Zoetic International, the UK’s only LSE listed vertically integrated CBD company, has released a trading update which shows that the company is progressing well with building up its business. The company is moving ahead with marketing its CBD products in both the US and UK, with its first major distribution contract now in final form. Zoetic is also gearing up for seed sales ahead of the planting season through expanding its sales outlets. Going forward investors will be looking at the outcome of the seed sales and the pending wide-scale distribution of its “Chill” branded products.

Operational Update

Zoetic International, the UK’s only LSE listed vertically integrated CBD company, has released its interim results for the six months ending 30 September 2019. The group reported a loss of £4.0 million which reflects the start-up costs of the CBD business, a write down of exploration assets and an unprofitable Natural Resources business (which has now achieved profitability). However, more importantly these results show encouraging evidence that its CBD business is starting to gain traction and should be the main driver of business going forwards. With the brands established, management is now focusing on revenue growth.