Significant value increase for the Abandoned Mine Methane (AMM) gas reserves certified in Hauts-de-France

Pontpierre, France, January 13^th, 2022 – La Française de l’Énergie (Euronext: LFDE – ISIN: FR0013030152), a carbon negative energy producer, announces a new certification of its 2P abandoned mine gas (AMM) reserves on the two concessions held in the Hauts-de-France’s region.

While 360 ??million m3 have already been captured and monetize through the production of gas and green electricity over the last 4 years, this new certification carried out by DMT (Tüv Nord group) now shows AMM reserves of 3.6 billion m3 (21.6 TWh), thus confirming the significant potential for the capture and recovery of mine gas, well above the current objective set at 49.5 MW of installed capacity in the Franco-Belgian basin by the end of 2022.

La Francaise de l’Energie anticipates that more than 3 million tonnes of CO2eq emissions will be avoided annually through the capture of AMM and the installation of new cogeneration units in Hauts-de-France and Belgium. This development will reinforce the company’s positioning as the leading contributor to the region’s fight against Greenhouse Gas (GHG) emissions. This exceptional positive impact on the Hauts-de-France region makes LFDE one of the main players in the territory’s ecological transition.

 The rise in energy prices significantly increases the value of the Lorraine gas

 Moreover, in the context of structural increases in energy prices, the net asset value (NAV) of the Lorraine gas is now estimated at € 318 million[1], a sharp increase compared to the 2018 certification carried out by MHA (Sproule). The certified reserves which amount to 6.7 billion m3 of gas (1P, 2P, 3P) and its recovery in short circuits aim to replace the imported energy with local low-carbon energy in the Grand Est region.

 La Française de l’Energie confirms its objective of achieving annualized revenue of € 35 million and an EBITDA margin of over 45% by the end of 2022.

Next announcement :
S1 2021-2022 Sales – January 25^th 2022

[1] The net present value (NPV) corresponds to cash flows discounted at 10% over the duration of the future concession. It includes revenues with an average gas sale price of € 28.08/MWh (source EEX – PEG Nord France 2030 – as of 12/01/22), investments, operating costs and annual fixed and variable expenses.