Alkane Energy PLC Notice of Results and Trading Update (8522I)
09 Luglio 2013 - 8:00AM
UK Regulatory
TIDMALK
RNS Number : 8522I
Alkane Energy PLC
09 July 2013
9 July 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 half
year results for the six months ended 30 June 2013 (the "period"),
which Alkane will publish on 11 September 2013.
Trading Update
Trading for the period ended 30 June 2013 has been encouraging,
with output increasing 44% year on year and the Group expects to
deliver half yearly electricity output of circa 94GWh (H1 2012:
65GWh). This increase reflects the full contribution of the
acquisition of Greenpark Energy Limited which was completed on 26
April 2012, along with ongoing growth from Alkane's portfolio of
sites and a first time contribution from the acquisition of the
Maltby coal mine methane assets acquired on 24 May 2013.
The Maltby site is in its early changeover phase as mining
operations are ceased at the colliery and we are delighted to
report that we were able to achieve first production some five
weeks ahead of the original plan. We continue to appraise and gain
planning and permits on a range of sites for 2014 and beyond.
As at 30 June 2013, approximately 89% of the Group's expected
2013 baseload output is contracted at an average price of GBP53/MWh
(2012: GBP52/MWh). In addition, we have contracted 17% of the
expected output for 2014 at GBP54/MWh.
The Board has noted recent announcements from DECC and Ofgem
over a range of issues including the risk of power cuts as
generating capacity shrinks over the coming years. We believe this
positions the Company strongly to take advantage of business
opportunities that will arise.
In addition on 27 June 2013 the British Geological Survey
increased its estimates of UK shale resources. Although at an early
stage we continue to appraise the potential of our licences.
Commenting on the update, Chief Executive Officer, Neil O'Brien,
said:
"Our investment strategy has continued to deliver strong growth
in our core coal mine methane business and we are encouraged by
progress in power response which has seen higher call levels from
National Grid. Ofgem has recently again highlighted the risks
facing the UK of an energy gap in the electricity market, which
underpins our investment plans."
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief Executive
Officer
Steve Goalby, Finance Director 01623 827927
Altium Capital Limited
Adrian Reed
Liam May 0845 505 4343
VSA Capital Limited
Andrew Raca
020 3005 5004
Liberum Capital
Clayton Bush
Tim Graham 020 3100 2000
Hudson Sandler
Nick Lyon
Alex Brennan 020 7796 4133
Background information
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 completion of the acquisition
of the Maltby CMM Asset, Alkane now has a total of 81MW of
installed generating capacity and an electricity grid capacity of
100MW.
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 can be redeployed
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 mains gas.
The Group operates from 22 mid-size (up to 10MW) power plants
across the UK, 15 CMM only, 5 mains gas only, and 2 using both fuel
sources. Alkane use standard modular reciprocating engines to
generate the electricity and sells this power through the
electricity network. The engine units and other plant are designed
to be flexible and transportable allowing additional capacity to be
brought onto growing sites and underutilised plant to be moved to
new sites to maximise efficiency.
Alkane has a range of core skills encompassing the entire
project development cycle including planning and permitting,
sourcing plant and managing the build and commissioning stage. This
has enabled Alkane to establish a Design, Build & Operate
("DBO") business for third party clients in the biogas and oil
& gas industries.
The Group has more than 800km2 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 licence
areas. This includes any CMM, natural gas, coal bed methane ("CBM")
or shale gas.
More information is available on our website
www.alkane.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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