- PRM has received a firm commitment from Lead Manager GTT Ventures Pty Ltd to raise A$3.2 million before costs.
Funds raised will facilitate the Bowsprit drilling program and investment in Patriot Hydrogen, an Australian-based green hydrogen business to complement PRM’s oil and gas activities.
Patriot Hydrogen Investment
A Binding term sheet has been signed to acquire 20% of Patriot Hydrogen Pty The acquisition is subject to due diligence and PRM shareholder approval of the issue of the consideration shares.
- Patriot initially intends to construct a Biomass to Hydrogen plant at Port Anthony in Victoria where Patriot holds a binding term sheet to lease the site and construct the
- The hydrogen plant is anticipated to take approximately 12 months to be planned, constructed, commissioned, and reach steady-state production of 2 tonnes of hydrogen per
- Patriot will licence, build and develop the brand “Patriot 2 Hydrogen (P2H) units” for this biomass to hydrogen plants within
Commenting on the news Mr Parks, Managing Director of Prominence Energy said “It is exciting to be drilling and appraising the upside potential of Bowsprit this year and announcing our first step into the hydrogen sector. We believe the Patriot investment is an exciting entry for PRM into the growing Australian Hydrogen sector. Patriot has great potential to grow by placing P2H units in numerous settings to provide locally produced, low carbon electricity and hydrogen, both generated from essentially carbon neutral waste biomass materials. As the world transitions to a lower carbon base, PRM will transition too.”
PRM believes that oil and gas companies need to evolve to be more carbon-friendly in order to stay attractive to modern investors. The Patriot investment is seen as an attractive entry position into the green hydrogen sector. PRM believes that, as the Patriot biomass to hydrogen production units are modest in size and can be placed close to the end users, this will bypass some of the infrastructure challenges associated with the sale and use of hydrogen. The ability to produce low carbon onsite power generation and hydrogen offers the potential for long term expansion opportunities with units at numerous locations, such as bus ports for hydrogen use, and industrial sites that use power and have biomass waste such as sawmills, refuge centres and agriculture businesses.
PRM has signed a binding term sheet to acquire 20% of Patriot Hydrogen Pty Ltd4 for a consideration of 25 million PRM shares, $250,000, and 3 million PRMOB options. Patriot initially intends to construct a Biomass to Hydrogen plant at Port Anthony in Victoria where Patriot already holds a binding term sheet for the site lease and construction of the plant.
The plant is anticipated to take 12 months to be planned, constructed commissioned and reach steady state production of 2 tonnes of hydrogen per day. PRM’s $250,00 investment will primarily be used to complete the planning and design of the project. Patriot is in discussions regarding opportunities to expand capacity and to add additional sites for Patriot Biomass to hydrogen units.
For more information see https://patriothydrogen.com.au
PRM has firm commitments to place 320 million shares at a price of 1c per share with 1 PRMOB5 attaching option for every three shares subscribed for. The Placement will be made in two tranches with the second tranche (including Directors Participation for $200,000) subject to shareholder approval at an EGM.
The primary use of funds is the drilling of the vertical Bowsprit well which is expected to cost approximately A$2.5 million.