15th Jul 2009 07:00
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For immediate release |
15 July 2009 |
Alkane Energy plc
("Alkane" or "the Company")
Trading Update, Appointment of Nominated Advisor
and Directorate Change
Alkane Energy plc (AIM:ALK) the owner and operator of "Gas to Power" plants in the UK today announces an update on trading ahead of the Company's Interim Results scheduled for Wednesday 16 September 2009.
The Board of Alkane is pleased to report that it continues to trade in line with management expectations and the Company has made good progress in the installation of new capacity.
During H1, Alkane generated 40GWh in the UK, maintaining output at around 2008 levels. This stable output has been achieved despite reduced generation from the Bevercotes site where lower gas volumes have resulted in the move of some capacity to other operating sites. Whilst gas and electricity sales pricing have been volatile over the last 18 months the Company continues to benefit from the forward electricity pricing contracts which were entered into last year. The average selling price is expected to be approximately £60 per megawatt hour in 2009, and just below £50 per megawatt hour in 2010.
Alkane has a strong pipeline of new projects which are progressing well with additional sites expected to be commissioned during H2 of this year and during the start of 2010. The Company is delighted to announce that the new site at Bilsthorpe has commenced production ahead of plan. The Bilsthorpe site will have a 4.5MW capacity, with a further 1.9MW currently being commissioned at Shirebrook.
Following the disposal of Pro2 Anlagentechnik GmbH, Alkane's strategy is to focus on the growth of its UK business. Activities have been suspended at Joarin, our last remaining German Coal Mine Methane asset, with the gas engine being redeployed to the UK demonstrating our flexible infrastructure model. This plant flexibility allows us to reduce capital expenditure on new projects.
Appointment of Nominated Adviser and Broker
The Board is also pleased to announce the appointment of Altium Capital Limited ("Altium") as Nominated Adviser and Broker to the Company with immediate effect.
Management Succession
The Board of Alkane also announces today the retirement of David Oldham as Technical Director of the Company. David will stand down after 12 months following an orderly handover to a new Operations Manager, expected to be appointed shortly.
Commenting on trading and management succession Neil O'Brien, Alkane's Chief Executive Officer said:
"Trading in the first half of 2009 has been satisfactory. We are pleased that Bilsthorpe is commencing operations, and we expect to see further increases in output as this and additional new facilities come online.
"We would also like to thank David Oldham for his significant contribution to the Company over the past decade. His expertise has been critical in establishing our portfolio of trading assets and our strong license position. The Company has seen significant growth in Coal Mine Methane revenues in recent years which is in large part due to David's expertise and knowledge. We are grateful that he has agreed to assist in the succession planning and will remain with the Company for the next 12 months.
"In summary, we are pleased with the progress of the Group during the period and we remain in line with management expectations for the year as a whole."
For further information please contact:
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Alkane Energy plc Neil O'Brien, CEO Steve Goalby, Finance Director |
Tel: 01623 827927 |
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Buchanan Communications Ben Willey, Partner Miranda Higham, Associate |
Tel: 020 7466 5000 |
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Altium Capital Limited Corporate Finance -Adrian Reed Corporate Broking - Chloe Ponsonby |
Tel: 0161 831 9133 Tel: 020 7484 4079 |
Related Shares:
Alkemy Capital.