Molecular Energies updates on Paraguay

Molecular Energies, the international energy company, provides an update on the progress of the plans for the drilling of its Paraguay exploration well.

Paraguay Exploration

As announced previously, the spud date for the drilling of the high impact Paraguay exploration well is dependent upon the procuring by the designated drilling contractor ("DDC") of the drilling rig currently in Paraguay.

The delay in procurement by the DDC is due to the numerous consents and approvals needed by the current owner of the rig whose parent is emerging from bankruptcy. The Company understands that positive progress may now be made which subject to receipt of final permissions and approvals, will allow the rig to be procured by the DDC and contracted by the Company for the drilling during this month. Whilst the DDC and the Company have inspected the rig to the extent they can, repairs and checks on the rig are required to be made by the DDC due to it being stacked for a prolonged period of time which will involve the blow out preventer being serviced.

In relation to oil field services such as mud, solids control, cement etc. these have all been lined up and all casing is in the field and available. The button can be pressed to fix mobilisation dates when visibility on the rig becomes crystal clear. In this regard, all services are coming from Brazil, Argentina and Bolivia and have to travel over 1,000km each way to the remote drilling location so there will be a time lag between commencement of moving and readiness to drill.

Taking all this into account, subject as above, and managing expectations, it is prudent to now estimate the start of drilling in the latter part of Q1 2023 with mobilisation commencing in the first part of that quarter.