AGM Statement

RNS Number : 7271R

Alkane Energy PLC

06 May 2009

 



For Immediate Release

6 May 2009

Alkane Energy plc

('Alkane' or 'the Company')

AGM Statement

Alkane Energy plc (AIM: ALK) is a fast growing owner and operator of 'Gas to Power' plants in the UK. Our strategically located gas source is coal mine methane (CMM) extracted from abandoned collieries.

At the Annual General Meeting of Alkane Energy plc, to be held today at 11.00am at Edwinstowe House, High Street, Edwinstowe, Nottinghamshire, John Lander, Chairman of Alkane, will make the following statement:

'I am pleased to report that in 2008 the Company made a profit before tax on continuing operations of £1,948k compared with £853k in 2007, an increase of 128% year on year. Alkane has also grown its CMM revenue by a compound rate of 65% since 2004, to reach £5,200k in 2008.

2009 has started in line with expectations. Electricity sales contracts are in place for 95% of Alkane's existing UK capacity in 2009, with the average electricity sales price expected to be around £60/MWh compared to £48/MWh achieved in 2008. We have a number of contracts which run into Spring 2010 but we remain cautious on pricing thereafter.

As previously announced we completed the sale of our stake in Pro2 Anlagentechnik GmbH on 2 March 2009. Together with the repayment of a working capital loan of €2,000k and a shareholder loan of €1,960k, the total receipts from the sale will be approximately €7,560k. Of this amount €5,880k has been received to date.  

These funds are being utilised in the development of the project pipeline and we are making good progress with the roll-out programme.  This project pipeline is aimed at expanding our installed capacity, over the medium term, to 50MW and providing us with a portfolio of assets to replace sites where the gas reserves become depleted.  We have successfully completed drilling at Bilsthorpe in Nottinghamshire, which is currently under construction; we expect the site be completed in the second half of 2009 and to provide generation capacity of up to 4.65MW.  

Lord Fraser retires from the Board today after eight years of successful service to Alkane. On behalf of the Board I thank him for his contribution to the Company and wish him well for the future.

In closing, I would like to thank my colleagues for their hard work and expertise in continuing to operate a profitable business with good growth prospects.'

John Lander 

Chairman

Enquiries:

Alkane Energy plc Neil O'Brien, CEO Steve Goalby, Finance Director	Tel: [phone]
Buchanan Communications Dr. Ben Willey, Partner Miranda Higham, Associate Brewin Dolphin Andrew Emmott, Director	Tel: [phone]  Tel: [phone]

 

END

 

 

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