ECO Eco (atlantic) Oil & Gas Ltd

    RNS Number : 2231V
  EcoSecurities Group plc
  27 May 2008
   

    EcoSecurities Group - AGM Statement

    EcoSecurities Group plc

    AGM Statement

    Dublin, Ireland - EcoSecurities Group plc ('EcoSecurities', or the 'Group'), one of the world's leading companies in the business of
originating, implementing and commercialising carbon credits from greenhouse gas emission reduction projects, will hold its Annual General
Meeting in Dublin, Ireland today at 08:30 am. At the meeting Mark Nicholls, Chairman, will give the following update on trading:

    In the period to date in 2008, EcoSecurities has continued to make progress as follows:

    *     CDM project implementation continues to progress.  The enhanced focus on implementation initiated in late 2007 is already showing
results with 18 new registrations being achieved in April and May. The benefits of the improved prioritisation process can also be seen with
the average size of the newly registered projects being 720,000 CERs per project. 
    *     At 30 April 2008, 119 projects had been registered with the CDM Executive Board, up from 101 projects at the end of February.  On
a net basis to EcoSecurities these 119 projects are capable of producing 25 million CERs, representing 21% of the Group portfolio (an
increase from 10% at the end of February).  At 30 April 2008, 147 projects had been validated and these projects are capable of producing 37
million CERs on a net basis, representing 31% of the portfolio. 
    *     The Group's contracted projects and portfolio CERs on a net basis can be analysed as follows:
                                         30 April 2008                29 February 2008
 Project cycle landmark          No. of projects  Million CERs  No. of Projects  Million CERs
 (cumulative values)
 Contracted                                  517           143              479           150
 Due diligence                                83            23               68            28
 Portfolio                                   434           120              411           122

 Operational stage:
 Financed                                    373           104              351           102
 Construction started                        314            90              305            89
 Operation started                           177            50              163            41

 CDM stage:
 PDD complete                                273            77              250            74
 Submitted to validation                     251            73              235            68
 HNA obtained                                229            73              195            63
 Validated                                   147            37              131            30
 Submitted to registration                   145            36              129            29
 Registered                                  119            25              101            13

    *     Due to movements in the price of vegetable oil, EcoSecurities believes a number of biodiesel portfolio projects may be
uneconomical. Accordingly, on a prudent basis, projects capable of generating 5.4 million CERs to 2012 have been removed from the portfolio
at this stage  
    *     More than 96% of EcoSecurities' portfolio is derived from projects with approved methodologies. In addition, EcoSecurities does
not have any JI projects within its project portfolio. 
    *     Most of the CERs anticipated to be issued in 2008 will arise from projects undergoing their first verification and thus
projections of CER production from the portfolio in the year will, as usual, be constantly reviewed and updated throughout the year. As
expected, given CER issuance will be concentrated around the year-end, it is difficult to be precise at this stage in relation to the number
of CERs that will fall to be accounted for in 2008, as opposed to 2009.
    *     Given the anticipated high level of verifications being undertaken in the final quarter of 2008 and the continuing uncertainties
surrounding the time taken by the CDM process and DOEs, the Company has brought forward the times of its planned verifications for projects
to allow additional time for the issuance process in order that the Company is best placed to meet its ongoing delivery schedule.
    *     Recognising the Group's expectations of an active market beyond 2012, the Group's post-2012 CER portfolio amounted to 115 million
CERs representing an increase of 7 million CERs since 29 February 2008.  In relation to the voluntary markets, the Group's VER portfolio at
30 April 2008 was 13 million VERs. 
    *     The earthquake that struck Sichuan province, China on 12 May 2008 appears to have had limited impact on the Group's projects in
the region and, fortunately, none of its employees was hurt.  The region continues to suffer aftershocks but currently of 46 of its projects
in Sichuan, 41 are confirmed to be operating normally, including all the projects in Sichuan due to issue CERs this year.  It is anticipated
that four projects in Sichuan will be delayed, representing a reduction of under 450,000 CERs in 2009 and 2010. No information is available
on the Miyaluo small hydro project, which is capable of producing 294,000 CERs to 2012, located near the epicentre of the earthquake. 
    *     EcoSecurities cash balance at 30 April comprised EUR53m, including EUR22m of restricted cash. EUR7.2m of restricted cash was
released back to the Company in May 2008 and a further EUR11.6m is due to be released by June 2008.  Use of cash since 29 February 2008
included the purchase of CER inventories for secondary trading activities.  EcoSecurities stock of CERs at 30 April 2008 comprised 1,390,000
CERs and 1,590,000 VERs.
    *     On 20 May 2008, Cargill Inc. exercised its warrant to subscribe for 3,248,720 ordinary shares at a price of US$1.1543 per share.
The proceeds for EcoSecurities amount to US$3.75m.

    CDM = Clean Development Mechanism, the provision of the Kyoto Protocol that governs project level carbon credit transactions between
developed and developing countries.


    CER = Certified Emission Reduction, carbon credits created by Clean Development Mechanism projects. One CER corresponds to 1 tonne of
CO2e emission reductions.


    DOE = Designated Operational Entity is an organisation accredited by the CDM Executive Board. A DOE has two key functions, to validate
and subsequently request registration of a proposed CDM project and to verify Emission Reductions from a registered CDM project activity.

    

    EU ETS = European Union Emissions Trading Scheme, a market based 'cap and trade' system for green house gases adopted by the European
Union member states.


    JI = Joint Implementation - The provision of the Kyoto Protocol that governs project-level carbon credit transactions between entities
located in Annex 1 countries (i.e. those developed countries with emission reduction commitments under the Kyoto Protocol).

    

    Net Trading Margin = The resulting gross profit on the sale of CERs less the direct purchase cost.


    VER = Voluntary or Verified Emission Reduction, carbon credits created by emission reduction projects. One VER corresponds to 1 tonne of
CO2e emission reductions.

    - Ends -


    For further information please contact:

    EcoSecurities Group plc

    Bruce Usher, CEO +353 1613 9814
    Pedro Moura Costa, President
    Adrian Fernando, COO
    James Thompson, CFO

    Citigate Dewe Rogerson +44 (0) 20 7638 9571
    Kevin Smith / Ged Brumby


    About EcoSecurities:

    EcoSecurities is one of the world's leading companies in the business of sourcing, developing and trading carbon credits. EcoSecurities
structures and guides greenhouse gas emission reduction projects through the project cycle, working with both project developers and buyers
of carbon credits.

    EcoSecurities has experience with projects in the areas of renewable energy, agriculture and urban waste management, industrial
efficiency and forestry. With a network of offices and representatives in over 25 countries on five continents, EcoSecurities has amassed
one of the industry's largest and most diversified portfolios of carbon projects.

    Utilising its highly diversified portfolio, EcoSecurities is able to structure carbon credit transactions to fit any buyers' needs, and
has executed transactions with both private and public sector buyers in Europe, North America and Japan.

    Working at the forefront of carbon market development, EcoSecurities has been involved in the development of many of the global carbon
market's most important milestones, including developing the world's first CDM project to be registered under the Kyoto Protocol.
EcoSecurities Global Consulting Services has been at the forefront of all significant policy and scientific developments in this field.
EcoSecurities has been voted 'Best Advisory Firm - Kyoto Project Credits' over the last seven years by reader surveys conducted by
Environmental Finance magazine.

    EcoSecurities Group plc is listed on the London Stock Exchange AIM (ticker ECO). Additional information is available at
www.ecosecurities.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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