(Alliance News) - Kibo Energy PLC on Monday said its 55% subsidiary MAST Energy Developments PLC agreed to buy Rochdale Power Ltd for the installation of a 4.4 megawatts flexible gas power project in Dig Gate Lane, Rochdale.
The acquisition amounts to GBP90,000 while the property rights amount to GBP132,000, totalling GBP222,000, which will be funded from the current MAST working capital budget.
The company said Rochdale will provide additional revenue opportunity, increasing the overall revenue stream by adding to the Bordesley project, which is currently under construction, and Pye Bridge project, which is already in production.
MAST said, subject to issuing the notice to proceed and no external connectivity delays, commercial commissioning of the Rochdale site is expected during the second quarter of 2022.
"The acquisition of this 4.4 megawatts gas power project will represent the third site in MED's growing portfolio of flexible power plants in the UK," noted Kibo Energy Chief Executive Louis Coetzee.
"The acquisition of Rochdale will allow the company to reach its initial production target of 20 megawatts within the time and budget targets set out in the company's prospectus. We are currently on schedule and within budget in terms of the development plan for all the sites under active development," added MED CEO Paul Venter.
MAST shares were trading 3.0% higher in London on Monday at 13.00 pence each, while Kibo shares were down 3.0% at 0.21p each. In Johannesburg, Kibo shares were trading flat at ZAR0.08 each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Kibo Energy (KIBO)
Mast Energy. (MAST)