New banking facility (5242O)
20 Settembre 2011 - 8:00AM
UK Regulatory
TIDMALK
RNS Number : 5242O
Alkane Energy PLC
20 September 2011
20 September 2011
Alkane Energy plc
("Alkane" or "the Company")
New banking facility
Alkane Energy plc announces it has reached agreement with its
current lending bank Lloyds TSB Bank PLC for an increase of GBP2m
to its current GBP5.5m bank facility, with the new GBP7.5m facility
maturing in July 2013. The interest charge is 2.5% above LIBOR and
covenants are in place in respect of growth of net worth, EBITDA
levels relative to outstanding debt, interest cover, minimum
electricity pricing levels and the proportion of output under
contract.
Alkane continues to work well within the current bank facility
and covenants. The Company's operating sites are highly cash
generative, with EBITDA margins of circa 50%. This organic cash
flow combined with the increased facility will provide Alkane with
the ability to take the Company through its coal mine methane
roll-out programme and allow advantage to be taken of further
growth opportunities.
-ends-
For more information please contact:
Alkane Energy plc
Steve Goalby, Finance Director 01623 827927
Altium Capital Limited
Adrian Reed, Financial Advisory
Chloe Ponsonby, Corporate 0845 505 4343
Broking 020 7484 4040
Hudson Sandler
Nick Lyon
Alex Brennan 020 7796 4133
www.alkane.co.uk
Notes to Editors:
Alkane is a profitable, cash generative and growing 'clean tech'
business operating from 12 power plants around the UK with a
capacity of over 40MW and with a growing presence in renewable
biogas and power response.
The Company has the UK's leading portfolio of coal mine methane
("CMM") licences, enabling it to extract gas from abandoned coal
mines. Alkane started extracting CMM in 1999 with sites at
Shirebrook, Steetley and Markham. Shirebrook and Markham are still
operational today, a decade after they were opened. Shirebrook is
still producing CMM and surplus generating capacity has been
deployed to power response along with capacity at Markham.
The Group now generates power from 13 mid size (up to 10MW)
plants across the UK and sells this power through the electricity
distribution network. The electricity is generated using standard
modular reciprocating engines, and these units and other ancillary
plant are designed to be flexible and transportable. This allows
additional capacity to be brought onto growing sites and
underutilised plant to be moved to new sites to maximise
efficiency.
The Alkane operating model has already been transferred to power
response, and currently operates 8MW across two sites on
conventional gas with our trading partner (GDF SUEZ Energy UK).
Power response incorporates peak running (normally 16.00 to 19.00
each weekday) and Short Term Operating Reserve ("STOR") under which
National Grid contract standby facilities with generators.
The Biogas market also provides a potential new business stream
which will require the same power assets and core gas and
electricity skills as CMM. Alkane has a collaboration agreement
with the TEG Group PLC ("TEG") to build and operate anaerobic
digestion ("AD") facilities using municipal waste.
Alkane's onshore licence position, which extends to over
600km(2) , includes coal bed methane ("CBM") and shale gas
potential. These are longer term opportunities, with a different
risk profile, and therefore the Company is seeking a partner who
can bring CBM experience and financing through the exploration
stage.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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