Curzon Energy : Annual Report 2020

Registered Company Number: 09976843

Curzon Energy Plc

Annual Report and Financial Statements for the year ended 31 December 2020

Curzon Energy Plc

	Annual Report 2020
Contents	Page Number
Company Information	(i)
Chairman's Statement	1
Strategic Report	3
Directors' Report	6
Remuneration Report	13
Statement of Directors' Responsibilities in Respect of the Strategic Report, the	17
Directors' Report and the Financial Statements
Independent Auditors' Report to the Members of Curzon Energy Plc	18
Consolidated Statement of Comprehensive Income	22
Consolidated Statement of Financial Position	23
Consolidated Statement of Changes in Equity	24
Consolidated Statement of Cash Flows	26
Notes to the Consolidated Financial Statements	27
Company Statement of Financial Position	54
Company Statement of Changes in Equity	55
Company Statement of Cash Flows	56
Notes to the Company Financial Statements	57

Curzon Energy Plc

	Annual Report 2020
Company Information
Directors	Company's Solicitors
John McGoldrick	Hill Dickenson LLP
Chairman and Non-Executive Director	The Broadgate Tower
Scott Kaintz	20 Primrose Street
Executive Director	London
Owen May	EC2A 2EW
Non-Executive Director	Financial Advisor and Broker
Company Secretary
SP Angel Corporate Finance LLP
Sam Quinn	Prince Frederick House
Registered Company Number	35-39 Maddox Street
London
09976843	W1S 2PP
Website	Registrars
www.curzonenergy.com	Neville Registrars Limited
Registered Address	Neville House
18 Laurel Lane
Kemp House	Halesowen
152 City Road	B63 3DA
London	Bankers
EC1V 2NX
Independent Auditors	Barclays Bank Plc
Level 27
Crowe UK LLP	One Churchill Place
55 Ludgate Hill	London
London	E14 5HP
EC4M 7JW

Curzon Energy Plc

Annual Report 2020

Chairman's Statement

I am pleased to present the annual report for Curzon Energy Plc (the "Company"), covering its results for the year to 31 December 2020.

Period in Review

During the course of 2020, the Company focused its efforts on completing a potential reverse takeover transaction ("RTO") with Sun Seven Stars Investment Group ("SSSIG") that did not ultimately complete. While all parties put in significant amounts of time and effort towards this goal, and the target itself was considered of material scale and likely to be of real interest to potential investors, it was ultimately not possible to combine the various independent businesses proposed by SSSIG to progress a RTO to completion. As a result, the Company announced after the period, on 3 February 2021 that it had ceased discussions on a transaction with SSSIG.

Also on 3 February 2021, the Company announced that it had entered a period of exclusivity in order to conduct due diligence and to potentially acquire a 100% interest in Poseidon Enhanced Technologies Ltd ("PETL" or "Poseidon"), developer of a proprietary chemical Polyethylene terephthalate ("PET") plastic recycling technology, whose goal is to convert used PET into 100% recycled feedstock to support the global food-grade packaging and fibre industries. PETL's process allows for the conversion of previously unrecycled plastics such as colored bottles, trays, fibres and films, converting them directly into Poseidon rBHET, an interim feedstock for the global PET industry, and fully in line with and supporting a "Circular Economy".

Poseidon is currently developing its recycling technology at its facilities in Teesside, UK, and is planning a global industrial scale roll-out of its technology, following completion of its listing process and associated capital raise.

Activities at Coos Bay were minimal during the course of the year, with the project remaining on care and maintenance. The Company has been exploring formal extensions of the project leases as well as a potential farm-out or sale of the project more broadly.

Results

For the period ended 31 December 2020, the Group incurred a loss of US$617,574 (2019: a loss of US$3,580,750). The majority of this loss comprised administrative expenses, associated with supporting the SSSIG transaction as well as required listing and regulatory overheads. Overall administrative expenses fell during the period from US$913,572 in 2019 to US$528,799 as the Company continued to operate with reduced overheads.

Outlook

At the time of writing, the United Kingdom and the larger world continue to deal with the effects of the COVID-19 pandemic and its associated volatility. While many commentators quite reasonably projected an extended economic downturn following the spread of the COVID-19 pandemic, markets remain exceptionally buoyant, following various governments' significant economic stimulus packages lifting valuations and the rise of retail day traders. Meanwhile, during lockdown, countless individuals have increased their savings rates whether intentionally or simply due to a lack of viable consumption options for goods and services. Much of that nascent financial firepower remains on the sidelines, as do the buildings and capital infrastructure, largely unaffected by the virus itself, and points to a potential period of significant financial growth, as well of course as the looming threat of inflation, as vaccination levels increase and consumers make up for missed spending opportunities and lost time.

What is clear, is that many of the world's governments from the United States to Europe have decided to use pandemic recovery efforts to refocus their attentions on the impact of carbon emissions and the environment, including sectors such agriculture, industry, waste, energy and transport. This invigorated environmental agenda means the opportunity in the Environmental, Social and Governance (ESG) space that PETL's chemical recycling addresses is a real one, and is only likely to be bolstered by government spending stimulus and the introduction of further regulation and legislation by governments in support of this agenda. Forthcoming virgin plastics penalties in regions such as the EU are stimulating global brands to invest in and support companies such as PETL offering 100% recycled plastic solutions, facilitating some of the world's largest drinks and food brands to honour their aggressive and very publicly declared recycling targets. PETL is expected to attract very strong investor interest and intends to access green

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Curzon Energy Plc

Annual Report 2020

bonds and related ESG focused capital to tackle what is in essence a multi-national challenge; making plastics a sustainable part of the global economy.

Curzon, after many months of effort, thus finds itself well positioned with a transaction on the leading edge of a massive global shift towards ESG investments. Through this transaction, Curzon has ambitious plans to enter a sector that could not be more in focus and topical, and where the completion of an RTO is likely to create a dynamic and high growth recycling entity, one that will appeal to institutional and retail investors alike and one that will help meet one of the world's great environmental challenges.

So, it is with high expectations that Curzon has begun 2021 and continues to advance a potential transaction with PET. We thank all stakeholders for their support both historically and in the period ahead as we look to advance and execute on the opportunity in front of us.

John McGoldrick

Non-Executive Chairman

29 April 2021

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