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you are quite correct, they assisted in the private placing back in May which raised £6m. ALK used this money to acquire the assets at Maltby Colliery (South Yorkshire - CMM site) from Hargreaves which at the time was well recieved by the markets ... infact once the announcement was made and the usual downward spike to the placing price (27p) had occured it actually seemed to clear the way for our rise to 40p. So, the question now is ... what value will Liberium add for ALK now that they have a larger advisory role to play in our business (Answers on a postcard ... or alternatively post them on this board) ?? BTW - We still owe Hargreaves ca £2m at some point next year once the entire colliery site is fully closed up and correctly sealed ... Liberium Capital .... fundraisers .... Hmmmm ??!! Also guys ... we allowed Doctor Davies recent windfall pass without significant comment ... any thoughts (Other than he needed £400k to buy a new house or something) ?? Cheers Wooly ;o)
Kenstaff, Seven Star Natural Gas Ltd. acquired in May 2011 for total £420K (£300K for the assets and £120K in respect loan payments). As far as Nook is concerned we took a 50% interest in this licence (PEDL141) as result of the acquisition of Seven Star, we share ownership with Egdon Resources (46%) and Altwood Petroleum (4%). I am not sure how the costs and revenues involved in the project at Nook are to be aportioned, when I visited site the sign board at the entrance was very clearly Alkane Energy, however it did also make reference to Seven Star ... very interesting, does this mean that that Alkane have kept Seven Star as a stand alone subsidary rather than absorbing it within the larger Group ? Looking forward to another leg up in SP soon as this 40p barrier as it proving somewhat stubborn... everybody.... heeeeeve !!!!!! Regards Wooly
My understanding is that the gas discovered by Shell was not of commercially recoverable volume/pressure, although the planning documents suggest that it was distribution infrastructure (lack of it) that forced the decision to cap and abandon the two wells at Nook Farm. Where ALK are able to exploit these reserves is that firstly they knew gas was present, it had been previously discovered and local authorities had detected it leaking prior to start of works... Secondly we are not looking to pipe gas away from site, we are looking to run two low pressure gen sets located 250m from the well head so we don't have to worry about pipeline costs or exportable pressure etc. I guess we will learn more in time as testing of the remaining active well is carried out and completed, but I would be confident that the gas is there and in sufficient volume to run our engines, but that is just my opinion. Guess the value of the gas is directly related to the electricity generated from its extraction rather than the actual value of the gas itself ?? Catch you later guys ... Wooly ;o)
Had a ride out to take a look at this site in person today, it was an extremely tidy site but impressive sight nevertheless. Huge amount of earthworking appears to have been undertaken and a large plateu created upon which I assume the genset sheds will soon be constructed. I have to say that the location of this site is quite simply stunning, nothing but dramatic rolling countyside all around and ALK are really doing a fantasic job to seamlessly blend into the background (first class job guys - congrats). The team might be well advised to take a group of local residents etc from Callow over to view this site for themselves and talk to the locals etc. Testing is running approx 1mnth behind schedule however my guess is that the Nook should be up and running by new year IMHO. Anyway, thats my 3rd site visited and is always good to see first hand the great work our guys are doing... sometimes its far too easy to just be an armchair investor, but to my mind if you really truly believe in the business in which you are invested, then there is nothing quite like getting out there and taking a look or chatting to the management. PS - 1m sell had very little impact on sp.... there was a time whe that would have set us back 5p which says a lot abouthow we have built a level of resiliance and support (Iit could have been a negotiated swap Iif someone was looking to offload a few and there was a buyer already lined up) ? Anyway just thought I would share my experience of this afternoon. GLA - Wooly ; o)
Interesting debate about fuel poverty and UK energy deficit ... closing comment from Socialist MP representing Stoke on Trent was ... we have lots and lots of coal bed methane in Stoke on Trent and we intend to exploit that to the full !! Let me think .... I might need some help here ... Who owns all of the hydrocarbons locked up in the coal mines under Stoke .... answers on a postcard please ?
Get yourself up there and have a good old snoop about, ask as many questions as you can (If anyone about that is). Of particular interest is phase two works to rework and horizontally drill an old producing well, as this is where the longer term opertunity lies... I guess phase one was good for cash injection but ultimately it was a once off job and one hit payment, its the gas and energy generation potential of second well that really floats my boat ! I have searched all over google satelite maps and streetviewed the area so much that I am begining to feel like a bit of a stalker or one of those odd folk that wonder the streets carrying a dog leash but who dont own a dog .... hmmmmm worrying !! Remember to add a packet of candles to your christmas list this year, may be most practical present you ever gave this winter...#who turned out the lights ?
ALK is like a tightly wound spring ready to be released with a positive update from the 'Nooks' ...? Firm resistance at 38p so is trading sideways in a very tight range for now.... occasionally taking a nosey at 40-41p and then hunkering back down to its comfort blanket price range. Might I be so bold as to suggest the following 'Perfect Storm' (In a good way) ... Firstly a series of positive updates later this year re: output growth and succesful completion at Nook Farm. Secondly a couple of regional or national energy black-outs before spring arrives (Fuelling a feeding frenzy in mainstream media). Thirdly, some carefully timed and savvy company marketing initiatives to really raise our profile and sell the potential of G2P and Power Response capabilities (Released just after any black-outs). ... and I think you might agree that todays SP will look very cheap indeed ! OK, I have convinced myself that we are still way undervalued... Wooly reitterates target @ 46-48p (May'14) PS : Woolyback is from the correct end of 'A52 - Brian Clough Way' ... so, No I am not from Lanceshire if thats what you mean?
As far as I can see the net contribution from DL acquisition is pretty much included at ca £2.80 There is a chance that with a fair wind and a pinch of luck that this could creep to £3.11 by my calcs ... but depends how they manage the integration and what synergy savings can be flushed out along the way. This share is a solid income play IMHO.
Very interesting read, it seems the mainstream national media are also now singing from our hymm sheet ... http://www.bbc.co.uk/news/business-24433778 ALK nicely positioed to exploit these potential shortfalls in power via our Powere Response facilities ... ££££££ Regards Wooly ;o)
I might be wrong, but I think the company have parked all CBM activities for the time being ... opting instead to focus on CMM and once off projects similar to the initial job at the Nook ? Apologies if my info is inaccurate, but reading interims I certainly got the impression CBM was not priority ? Regards Wooly
Couldn't resist topping up today, think I saw a miniature tree shake today and then a flurry of buys so figured I would take a look down the back of the sofa and grab me a few more of these ! Has been a smashing ride up from the 15p mark when I first bought into ALK... I can absolutely relate to your pain on over hyped penny stocks, my PF was littered with them until I took the hatchet to a bunch of them back in August. Can't see much value factored in here for our potentially huge gas reserves ... Not long to wait until we hear about activities at Nook Farm (December is my guess) ... Fingers crossed the gas that was leaking is soon to be contained and controlled via a couple of our shiny gen sets ?? Wooly is still holding tight - GLA ;o)
My comments not taken from Investors Chronicle article... merely observations and speculations on my behalf. Although when I spoke with company director earlier this year he suggested that should that the first phase of Nook was very advanced stage and that should have completed second phase by end of 2013 or early 2014. I am very optimistic therefore I am assuming ALK drill of second well is likely to yield sufficient gas to run gensets dispite not being of commercial interest back when gas was discovered by previous owners... our engines can run on low pressure. Not sure what meaning I know or dont know ?? But what I can tell you after being invested here since 2007 is 40p looks damn cheap once full potential and value of our sizeable and growing estate is finally realised, not to mention impact of acquisitions when they are fully integrated, and then there is AD projects and last but not least the sleeper.... CBM where we basically let farm in partner do the work and take chunk of revenues (Fingers Crossed). Looking forward to results.... GLA Wooly
Nice to see mainstream coverage for ALK today. Hope to see SP north of 40p post results, also should have some news from the Nook in Q4.... we know there is gas as reason we are on site is to fix a gas leak !! So we get paid handsomely to fix the leak and cap the well... we then workover an adjacent well and plonk a couple of engines on top to tap into all that sneaky leak gas. Asset base steadily growing, electricity output steadily growing, wider interest steadily growing, potential for major shale find steadily growing.... ??!
Hi guys, for what its worth I think that this is a good bit of business.... means that we no longer have to pay GP Energy any royalties for power generated at a site in Staffordshire (Further upside to an ever improving P&L). We also now have part interest in the licence that I assume contains this site ! All good stuff, not a game changer but good stuff all the same. Did anyone see the sandals and socks brigade on channel 4 news tonight..... protesting and trying to delay an oil exporstion drill down south somewhere posh looking ? Good luck and cumbiyah m-lord cumbiyah ! Wooly target under review ...SP flirted with previous target but taking a rest just for now it seems. Remember the magic number when results are delivered... 11.75 x earnings, lets hope for a nice surprise and some more action to add to the excitement
CEO was from NPower not EON... get ready for higher energy prices though no matter who he works for !! If energy prices are forced to rise due to lack of capacity ask yourself these simple questions.... Who do we think might be sitting pretty with a steadily growing CMM asset base & energy output ? Who has a fantasticly successful and scalable POWER RESPONSE business just raring to pump out the highly prized instant energy hit that the grid will be increasingly desperate for ? Who is currently fixing a leaky gas well in Staffordshire and then drilling it again to tap into the gas that we know is there in order to generate more electricity from it ? Who is sat on a number of onshore UK hydrocarbon licences which MUST be attracting interest of the majors given all the recent media talk about UK shale gas reserves etc ? Anyone got any ideas ... no me too ... not a clue ??!!
http://www.itv.com/news/update/2013-06-27/warning-power-shortages-risk-in-uk-to-increase/
ITV 10 Oclock news reporting potential for '70s style power rationing' due to aging and underinvested power infrastructure. Chief Exec of Major Utilities company (Think was EON) suggesting that UK public need to be fully aware and ready for impending energy price rises to help fund investment in alternative energy production facilities. Now take another listen to the recent couple of interviews with Niel O'Brian on here (ALK Media) ... sound familar ??? INVESTORS & INSTITUTIONS OF THE UK PLEASE WAKE UP .... ALKANE HAVE CHEAP GAS & ARE DAMN GOOD AT CONVERTING IT (QUICKLY) INTO ELECTRICTY !!! Enough said for tonight ... I cannot believe that this company is soooo far under the radar right now ... jeez !!
This posted on advfn. Emily Gosden is one of the Telegraph's reporters. She tweeted this afternoon from the Shale Gas World UK, Manchester conference Emily Gosden ‏@emilygosden Oh hello, Total is in attendance at Shale Gas World UK, wants to know why next onshore licensing round can't be hurried up - wants a look in. Her article for tomorrows Telegraph;- "French energy giant Total considering bidding for rights to explore for shale gas in Britain. French energy giant Total is considering bidding for rights to explore for shale gas in Britain and is "frustrated" by a lack of information on a licensing round to be held next year." More in here .......... http://www.telegraph.co.uk/earth/energy/10142149/French-energy-giant-Total-considering-bidding-for-rights-to-explore-for-shale-gas-in-Britain.html
Nice info, many thanks. Mr Money has been trying to ease sp back toward placing levels however a few canny buyers have been dipping their bread along the way which IMO has hindered their plans. Hold tight and buy into the dips is my plan, so quite happy for the sp to be walked either way ... simplzzz