Completion of Acquisition and Fundraising

RNS Number : 5308F

Alkane Energy PLC

24 May 2013

 



Alkane Energy plc

("Alkane", "the Group" or "the Company")

Completion of Acquisition and Fundraising

Alkane Energy plc, the independent gas to power company, is pleased to announce the completion of the acquisition (the "Acquisition") of certain of the coal mine methane assets of Maltby Colliery (the "Maltby CMM Asset") and associated £6.0 million (gross) fundraising (the "Fundraising") announced on 22 May 2013.

The Acquisition and the Fundraising were conditional upon the admission ("Admission") of the 22,222,223 ordinary shares of 0.5 pence each in the capital of the Company ("Placing Shares"). Admission occurred and dealings in the Placing Shares commenced at 8:00 a.m. (London time) 24 May 2013, and accordingly both the Acquisition and the Fundraising have now completed.

Following Admission, the issued share capital of the Company will be 123,585,247 ordinary shares of 0.5 pence each in the capital of the Company.

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 Andy Clarke	0845 505 4343
VSA Capital Limited Andrew Raca Liberum Capital Clayton Bush Tim Graham	020 3005 5004 020 3100 2227
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 20 mid-size (up to 10MW) power plants across the UK, 13 CMM only, 4 mains gas only, and 3 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 

 

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