Interim results

Petro Matad, the Mongolia-based E&P company, has this morning released its interim results for the six months ending 30 June 2022. The financials would appear to be in line with market expectations. On the operating side, management has made some progress, although this has again been slowed by the impact of China’s Covid lockdowns, as was mentioned in the company’s previous trading update in May. Despite this, management has been working on the Heron-1 well; once the Covid restrictions are resolved, this will enable Petro Matad to move ahead swiftly with completing the well as an oil producer.

Interim results

Hydrogen Utopia International (HUI) has announced a proposed joint venture with Powerhouse Energy Group (PHE) in the city of Konin, Poland. The joint venture will be a 50:50 partnership to build a non-recyclable waste plastic to hydrogen plant. Following the announcement in July of its first proposed plant in Ireland, this will be HUI’s second major potential project and demonstrates the momentum that is starting to build for the company.

Proposed JV with Powerhouse Energy in Poland

Hydrogen Utopia International (HUI) has announced that it has agreed heads of terms with Powerhouse Energy Group (PHE) for joint development of a proposed waste plastic to hydrogen plant at Lanespark, Tipperary in Ireland. This will be a 50:50 joint venture, aiming to build a plant on the site that HUI expects to acquire through its deal with Trifol in April 2022. This marks a major step forward in HUI establishing its first full scale waste plastic to hydrogen plant in Europe.

Proposed joint venture in Ireland

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.