10th Jun 2014 15:57
LONDON (Alliance News) - Maple Energy Tuesday said it harvested and processed 158,936 tonnes of sugar cane and produced 10,793 cubic metres of fuel-grade ethanol at its ethanol plant in the first three months of the year, as it continues to seek financing to develop its ethanol arm.
In an operations update for the three months to March 31, the energy company with assets in Peru said it generated around 13,162 megawatt-hours of electricity at its ethanol plant in the first three months of the year.
The company said that under its existing sales and distribution agreement with Tokyo-based Mitsui & Co. Ltd it sold around 11,399 cubic metres of fuel-grade ethanol to Mitsui as of March 31. In addition to the sales to Mitsui, it sold about 408 cubic metres of ethanol to domestic and regional markets.
Maple said total cash costs for the production of ethanol were around USD8.0 million, with USD6.1 million going on direct production costs.
The firm said it closed its ethanol plant in February until the second half of April to enable planned maintenance to be performed.
"The shut down was scheduled for this period as the sugar cane had not reached the minimum age from which it could be suitable for harvesting," Maple Energy said.
During the period, Maple Energy said it sold around 130,848 barrels of oil, with an average sales price of USD130.35 per barrel. Average daily crude oil production was around 422 barrels per day.
Looking ahead, Maple Energy said it is still actively seeking equity investments from strategic investors for its ethanol business. The company said this is progressing and it is hoping to close a transaction in coming months.
However, it warned that there are no guarantees that a transaction with strategic or financial investors can be reached on terms acceptable to the company, or at all.
"The ability of the company to execute a transaction on a timely basis is critical for the working capital position of its ethanol business," it said.
In the meantime, Maple said it is working closely with the senior lenders to the ethanol business in order to secure sufficient working capital until new funding is available to develop the business.
Maple Energy shares closed flat at 12.50 pence Tuesday.
By Anthony Tshibangu; [email protected];
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
MPLE.L