LONDON (Dow Jones)--Alkane Energy Plc (ALK.LN), owner and operator of "Gas to Power" plants in the U.K., announced Wednesday an additional three year GBP5.5 million Revolving Credit Facility with Lloyds TSB Bank PLC (LLOY.LN) to fund the development of its new sites. MAIN FACTS: -The three year committed facility extends to July 2013 and is specifically for the expansion of the Group's core organic coal mine methane or CMM business. -The interest charge is 2.5% above LIBOR and covenants are in place in respect of growth of net worth, EBITDA levels relative to outstanding debt, interest cover, minimum electricity pricing levels, and proportion of output under contract. -Lloyds will also become Alkane's clearing bank for daily banking operations. -During the first half of 2010 Alkane's electricity generation output has increased by 30% from the first six months of 2009. -This progress has been achieved through the introduction of new electricity generating sites over the last 12 months, with its newest site at Florence, Staffordshire, now fully commissioned bringing the total installed capacity to 33MW. -Alkane continues to progress its pipeline of new projects and two further sites will be commissioned during the second half of this year. -Electricity sales pricing has been weaker this year than in 2009. Expectations for 2010 are unchanged and in line with market forecasts, as contracts are largely in place for the year with the average selling price in 2010 expected to be just over GBP40/MWh, compared to GBP56/MWh in the previous year. -However the market has improved over recent months and since the final results announcement in March wholesale electricity prices have moved around 20% higher, with the forward price curve currently indicating increases for each of the next three years. -Due to the Group's increasing portfolio of CMM sites and the staggered nature of the forward contracts, Alkane has been able to take advantage of the rise in prices over the last month and has started to forward contract production into 2011. -So far the Group has placed contracts for around 25% of the expected output in 2011 at an average price of approximately GBP46/MWh. -Alkane continues to seek to develop new electricity generating sites with attractive rates of return and strong cash flows. -Progress on the project pipeline for 2011 has been good and a drill and test programme to confirm potential new reserves is expected to occur on at least three sites before the end of the year. -Shares closed Tuesday at 16 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; zechariah.hemans@dowjones.com (END) Dow Jones Newswires July 07, 2010 02:43 ET (06:43 GMT)