Alkane Energy PLC Approval of transfer of onshore shale gas business (3042J)
10 Giugno 2014 - 6:01PM
UK Regulatory
TIDMALK TIDMEDR
RNS Number : 3042J
Alkane Energy PLC
10 June 2014
10 June 2014
Alkane Energy plc
("Alkane" or the "Company")
Completion of transfer of onshore shale gas business
Alkane Energy plc (AIM: ALK), is pleased to note the
announcement made today by Egdon Resources Plc ("Egdon") in which
Egdon stated that it has received approval from DECC in relation to
its acquisition of Alkane's onshore shale gas interests (the
"Acquisition").
Accordingly, subject only to the admission of the ordinary
shares of Egdon issued in connection with the transaction which is
expected to occur on 12 June 2014, all conditions relating to
completion of the Acquisition have been satisfied and Alkane will
be issued 40,000,000 ordinary shares of Egdon as consideration for
the Acquisition.
Neil O'Brien, CEO of Alkane Energy commented:
"As a result of this transaction Alkane has become a significant
shareholder of one of the largest UK onshore oil and gas companies
and has material exposure to over 140,000 acres of prospective
shale gas acreage.
The Acquisition has provided immediate value to Alkane, whilst
allowing the Company to share in the upside should any of Egdon's
licences prove to contain exploitable oil and gas reserves."
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief Executive
Officer
Steve Goalby, Finance Director 01623 827927
Liberum
Clayton Bush
Tim Graham
Joshua Hughes 020 3100 2000
VSA Capital Limited
Andrew Raca 020 3005 5004
Hudson Sandler
Nick Lyon
Alex Brennan 020 7796 4133
Background information
Alkane is one of the UK's fastest growing independent power
generators. The Company operates mid-sized "gas to power"
electricity plants providing both base load and fast response
capacity to the grid. Following the acquisition of the Wheldale
power response assets, Alkane now has a total of 90MW of installed
generating capacity and an electricity grid capacity of 110MW.
Alkane's base load operations, where power is generated 24/7,
are centred 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 through
peak running, or in order to balance the electricity grid through
participation in the National Grid's short term operating reserve
programme ("STOR"). Participants in STOR are paid premium rates
when called upon by the Grid to meet temporary supply shortages.
Alkane now operates 43MW of power response on mains gas.
The Group operates from 24 mid-size (up to 10MW) power plants
across the UK, 15 CMM only, 6 mains gas only, and 3 using both fuel
sources. Alkane uses 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 and operate ("DBO")
business for third party clients in the biogas and oil & gas
industries.
The licences which are the subject of the transaction with Egdon
include PEDL001, PEDL011, PEDL037, PEDL039, PEDL043, PEDL169 (net
20 per cent), PEDL191, PEDL161-162, PEDL202 and EXL253.
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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