Alkane Energy PLC Notice of Results and Trading Update (8351V)
18 Gennaio 2013 - 8:00AM
UK Regulatory
TIDMALK
RNS Number : 8351V
Alkane Energy PLC
18 January 2013
18 January 2013
Alkane Energy plc
("Alkane" or "the Group")
Notice of Results and Trading Update
Notice of Results
Alkane Energy plc (AIM: ALK) the independent gas to power
producer, today announces an update on trading ahead of the results
for the year ended 31 December 2012 (the "period"), which Alkane
will publish on 13 March 2013.
Trading Update
Trading for the year ended 31 December 2012 has been very
encouraging, with output increasing 19% year on year. For the
period, the Group expects to deliver full year electricity output
of circa 167GWh (2011: 140GWh).
Group output has shown a 44% increase to circa 101MWh in H2 2012
compared with H2 2011. This increase reflects the contribution of
the seven sites acquired following the successful acquisition of
Greenpark Energy Limited which was completed on 26 April 2012.
These sites are producing greater output than originally
anticipated.
Electricity pricing has shown greater stability over recent
months with an expected average price of circa GBP52/MWh in the
year to 31 December 2012 (2011: GBP51/MWh). As at 31 December 2012,
approximately 68% of the Group's expected 2013 output is contracted
at an average price of GBP54/MWh.
In December 2012, Alkane was granted planning permission to
extract natural gas at Nooks Farm, Staffordshire to generate
electricity using the Group's core gas to power skills. Preparation
for drilling has commenced and the drill programme is expected to
be completed in spring 2013. The Nooks Farm site has estimated
contingent resources of 1.5bcf of gas, which is expected to provide
2MW electricity output for up to 15 years.
In 2012, Alkane received orders for new biogas plants worth
circa GBP4.0 million and continues to work on a number of further
biogas opportunities. Alkane has contracted 21MW of its Power
Response capacity to the National Grid's UK Short Term Operating
Reserve ("STOR") market up to March 2014.
The Group has more than 800km(2) of acreage under various
onshore Petroleum Exploration and Development Licences ("PEDLs").
Alkane retains a 100% interest in the majority of these PEDLs,
which extend to all of the hydrocarbons recoverable from these
licences. This would include any coal mine methane ("CMM"), natural
gas, coal bed methane ("CBM") and shale gas. The Board is
evaluating the options open to the Group in relation to potential
shale gas resources within its licensed portfolio.
The Board expects that the results for the year ended 31
December 2012 will be in line with market expectations.
Commenting on the update, Chief Executive Officer, Neil O'Brien,
said:
"We have continued to see strong growth in our core coal mine
methane business and we are encouraged by our progress in related
markets such as power response and biogas. The prospect of a
shortfall in energy supply in the UK, as highlighted by Ofgem and
the National Grid, reinforces our confidence about the continuing
opportunities to the Group for further growth. Given the high level
of interest in UK onshore shale gas, Alkane is evaluating its
options in relation to potential shale gas resources within its
licensed portfolio."
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief Executive
Officer 01623 827927
Steve Goalby, Finance Director 01623 827927
VSA Capital Limited
Andrew Raca 020 3005 5000
Altium Capital Limited
Adrian Reed
Andrew Clarke 0845 505 4343
Hudson Sandler
Nick Lyon
Alex Brennan 020 7796 4133
More information is available on our website
www.alkane.co.uk
Notes to Editors:
Alkane Energy is one of the UK's fastest growing independent
power generators. The Company operates mid-sized "gas to power"
electricity plants providing both predictable and fast response
capacity to the grid. Following the acquisition of Greenpark Energy
Limited ("Greenpark"), Alkane now has a total of 70MW of installed
generating capacity and an electrical grid capacity of 89MW.
Alkane's main operations are based on a portfolio of Coal Mine
Methane ("CMM") sites. Alkane has the UK's leading portfolio of CMM
licences, enabling the Company to extract gas from abandoned coal
mines.
As CMM declines at any one site Alkane retains valuable
generating capacity and a grid connection which we can move to
power response. Power response sites are connected to mains gas and
produce electricity at times of high electrical demand or in order
to balance the electricity grid. Alkane now operates 25MW of power
response on conventional gas post the Greenpark acquisition.
The Group operates from 20 mid-size (up to 10MW) power plants
across the UK, 13 CMM, 4 conventional gas and 3 using both fuel
sources, and sells this power through the electricity network,
using standard modular reciprocating engines to generate the
electricity. The engine units and other plant are designed to be
flexible and transportable and this allows additional capacity to
be brought onto growing sites and underutilised plant to be moved
to new sites to maximise efficiency.
The biogas market also provides a potential new business stream
where we are making progress. Running on gas generated from the
processing of organic waste will require exactly the same power
assets and core gas and electricity skills as CMM.
The Group has more than 800km(2) of acreage under various
onshore Petroleum Exploration and Development Licences ("PEDLs").
Alkane retains a full 100% interest in the majority of these PEDLs,
which extend to all of the hydrocarbons recoverable from these
licences. This would include any CMM, natural gas, coal bed methane
("CBM") and shale gas.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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