16th Dec 2009 07:00
16 December 2009
MAPLE ENERGY PLC
("Maple" or the "Company")
Ethanol Project Update
Maple Energy plc (AIM: MPLE; LIMA: MPLE), an integrated energy company with assets in Peru, is pleased to give an update on its ethanol project (the "Ethanol Project").
Macacara Pump Station and Main Water Reservoir
The Company has substantially completed all of the civil construction works related to the Macacara Pump Station which will extract water from the Chira River for delivery to Maple's main water reservoir and ultimately to the Ethanol Project's planned sugar cane estate. In addition, the water pipelines and canal system that will deliver water from the pump station to the main reservoir have been completed. The main water reservoir for the sugar cane estate, with capacity to hold approximately 660,000 cubic metres of water, has also been substantially completed.
Testing of two pumps at the Macacara Pump Station was conducted in November, and the Company expects to begin to fill the main reservoir with water from the Chira River by the end of the month.
Secondary Seed Cane Farm
Maple has developed a secondary seed cane farm of approximately 300 hectares by planting seed cane harvested from the Company's primary seed cane farms at Macacara and La Huaca. This secondary seed cane farm will supply the seed cane for the commercial planting of the main estate.
The seed cane farms have been developed with advanced drip irrigation systems designed to minimize the water requirements for the production of sugar cane. Five varieties of sugar cane have been selected for commercial planting, all of which have been successfully grown in Peru for many years. In addition, small quantities of over 30 other varieties of sugar cane have been planted at the primary and secondary seed cane farms for evaluation for potential use in the future.
Major Equipment for the Ethanol Plant
As part of the overall Ethanol Project, Maple will build an ethanol plant (the "Ethanol Plant") with capacity to process up to 5,000 tonnes of sugar cane per day. Construction of the Ethanol Plant has commenced with a number of the material pieces of equipment already complete or substantially complete. The sugar cane reception, handling, and preparation equipment; sugar juice extraction equipment, and sugar juice treatment equipment for the Ethanol Plant are currently being constructed. The boiler and complementary steam generation equipment, which will supply steam to the steam turbine and electric power generation facilities as well as process steam to the Ethanol Plant, is also being constructed .
The major components of the fermentation, distillation, and dehydration equipment for the Ethanol Plant have been completed and have been shipped to Peru or are ready for shipment. The steam turbine generator and related equipment, which is expected to produce up to 37 megawatts of electricity have been built and are ready for shipment to Peru.
Most of the major equipment is expected to be delivered to the planned site of the Ethanol Plant by the middle of 2010.
Ethanol Project Working Capital Facility
Maple has executed two short-term loan facilities with a Peruvian bank (the "Facilities") for an aggregate amount of US$4.5 million to provide additional working capital for the Ethanol Project. The loans of US$2 million and US$2.5 million will be due and payable on 6 April 2010 and 16 April 2010, respectively, and will be secured by certain equipment that has been delivered to Peru as well as 7,261 hectares of improved and unimproved land. The Facilities are expected to be repaid with proceeds from senior project debt financing currently under negotiation for the Ethanol Project.
Ethanol Project Presentation
On 11 December 2009, the Company posted a presentation on the Ethanol Project for the benefit of shareholders and investors on its website which provides further detail on the progress of this exciting project.
Rex Canon, CEO of Maple Energy, commented:
"I am very pleased by the significant progress that we have made with our Ethanol Project, and we anticipate that the construction of the main water conveyance system will be substantially complete and that the commercial planting of sugar cane on the main estate will commence in the first half of 2010. We also expect the remaining major pieces of equipment for our Ethanol Plant to be shipped to Peru by the second quarter of 2010."
For further information, please contact:
Maple Energy plc (+ 51 1 611 4000)
Rex W. Canon, Chief Executive Officer, President and Executive Director
Jefferies International Limited: (+44 20 7029 8000)
Jack Pryde
Paul Wheeler
Schuyler Evans
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
About Maple Energy
Maple is an integrated independent energy company, listed in London and Lima, with assets and operations in Peru engaging in numerous aspects of the energy industry, including:
Exploration and production of crude oil and natural gas
Refining, marketing and distribution of hydrocarbon products
The development of an ethanol project
Maple was admitted to AIM on 13 July 2007 and trades under the symbol "MPLE". The company was also admitted to the Lima Stock Exchange on 21 December 2007 where it trades under the same symbol.
Operations
Maple's operations are conducted and revenues are generated through its wholly-owned subsidiaries. Maple's principal operations consist of the following:
Crude Oil Production. Operator and holder of 100% working interests in its crude-oil producing properties, Blocks 31-B, 31-D and 31-E;
Refining, Marketing and Distribution Operations. Operator of the Pucallpa Refinery and Sales Plant, which has capacity to refine up to (i) 3,400 barrels per day of crude oil producing Residual 5 fuel oil, (ii) 3,000 barrels per day of crude oil producing Residual 6 fuel oil or (iii) 4,100 barrels per day of natural gasolines. This plant also includes sales and distribution operations in the central Peruvian jungle, central Peruvian highlands and Lima regions;
Ethanol Project. Project developer and major shareholder in an estimated US$222 million (excluding value-added taxes, debt service reserve account, and interest during construction) ethanol project located in the Piura Region on the northwest coast of Peru;
Oil and Gas Exploration. Significant exploration opportunities through a:- 100% working interest in Block 31-E, containing the San Roque and Cashiboya Deep prospects and the new shale gas opportunity; and- 33.77% working interest in the Aguaytía Deep Prospect in Block 31-C.
Forward-Looking Statements
Statements contained in this document, particularly those regarding possible, projected, or assumed future performance and results, including growth outlook, forecasted economics, operations, production, contracting, costs, prices, earnings, returns, and potential growth, are or may include forward-looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. These risks and uncertainties include, among other things, market conditions, weather risks, economic and political risks, and other factors discussed in Maple's Admission Document available on the Company's website (www.maple-energy.com). Forward-looking statements are not guarantees of future performance or an assurance that Maple's current assumptions and projections are valid. Actual results, actions, and developments may differ materially from those expressed or implied by those forward-looking statements depending on a variety of factors. Furthermore, any forward -looking statements presented are expressed in good faith and are believed to have a reasonable basis as of the date of this release. These forward-looking statements speak only as at the date of this release, and Maple does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
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