LONDON, UK: EnergyPathways, an integrated energy transition company, has announced its intention to go public on the London Stock Exchange’s AIM market, following a reverse takeover of Dial Square, a special purpose acquisition vehicle.

The company plans to raise a minimum of £2 million by way of a private placement to complete the deal and fund its flagship project, the Marram Gas Project, in the UK Irish Sea Basin.

EnergyPathways aims to produce low emission gas from the Marram field, which has an estimated 35.3 billion cubic feet of reserves, and support the UK’s transition to net zero carbon emissions and energy security.

The company also has a longer-term vision to explore other energy transition solutions and expand its portfolio in the UK East Irish Sea region.

The enlarged entity, to be renamed EnergyPathways plc, is expected to start trading on AIM on or around 14 December 2023, under the ticker EPP. The new board and management team will be led by experienced industry professionals with a track record of value creation.

Neil Cousins, Non-Executive Chairman of Dial Square said: “We chose EnergyPathways as the RTO target on the basis of its strong investment story and supportive market drivers. EnergyPathways’ story is highly topical and relevant to the UK market, and the value upside potential is clear to see from the Marram project economics. 

We were also attracted to their near-term news flow pipeline which provides plenty of scope for new and existing investors to benefit from progress towards FID and the award of additional and complementary licences.  We look forward to communicating this investment proposition to the market in the coming weeks as we seek to raise the funds to complete the RTO and admission to AIM in mid-December. 

I’d like to thank our shareholders for their patience through this process and we hope to reward them with what we believe to be a highly compelling and value-accretive transaction.”

Ben Clube, CEO of EnergyPathways said: “We are very excited to bring our investment proposition to the London market.  We believe the market drivers for our story are supportive in terms of the UK’s focus on Energy Security and demand for domestic natural gas to support the nation’s transition to Net Zero. 

Our activities have numerous positive impacts across the various pillars of ESG in terms of displacing higher-emission and higher-cost LNG imports and the CCS and Hydrogen storage characteristics of our focus asset, the economic implications of job creation and taxation as and when our assets move into production, and further, the impact that new, cleaner domestic supply will have in terms of UK’s Energy Security and consumer energy bills.

The economics of the Marram discovery are robust and compelling, with an NPV10 that represents a large multiple of our current valuation.  Upon completion of the fundraise, we aim to reach FID in 2024 and production of first gas in 2025.  With a substantial cash flow profile in the first two years, we hope investors will be enthused by the project’s rapid rates of return.  We are also seeing an improving political climate for our operations as the Government implements changes to encourage investment into the vital supply required to achieve the objectives of the nation’s energy policy.”