Alkemy Capital Investments Share Discussion Threads

[woolybanana] 07/10/2014 10:27

What kis making ALK drop like this?

[lageraemia] 04/10/2014 16:55

The same place they got income from last winter, was was extraordinarily mild - their business.

Mildness has very little to do with evening demand unless it's so mild people are eating salads and barbecues in December!

[woolybanana] 04/10/2014 11:03

If the winter is mild and less electricity is required for heating, where does Alkane get income from?

[timnet] 30/9/2014 17:08

Should we expect any fallout from TEG or is the joint venture ring-fenced?

[audigger] 24/9/2014 18:31

Good newws yet the share price goes down. AIM stocks for you! All looks set for a recovery in the share price so I will be adding.

[rivaldo] 24/9/2014 13:49

This article was evidently written just prior to the receipt of today's news, but there's also a useful interview with the CEO.

Note the news to come next month re "the outcome of tests at Markham Main", which "could be a 4MW site":

[rivaldo] 24/9/2014 10:38

Yes, as ALK says this morning there are virtually no additional costs for providing all this extra capacity since it's covered by their existing fleet.

In a way I'm hoping the shares continue to flatline for a while....

[lageraemia] 24/9/2014 09:45

My rough calculation is that you need about 500MW capacity to have 1% of the UK generating plant.

Economies of scale afforded by acquisions like the recent ones are starting to give ALK some economy of scale. Especially when the response time is short, and the capacity is geographically spread about and connected to local grids and not lost in HT transmission via the 'grid'.

This company is as bigger 'no brainer' for investment as you can find IMO.

[spaceparallax] 24/9/2014 09:35

Good news although it seemed likely anyway.

[puffintickler] 24/9/2014 08:41

"surely worth more than a .25p rise in the sp?"

I guess you could argue that this type of contract was pretty much inevitable, so no rise is not unexpected. However the share price has been unnecessarily low in recent times given profitability and growth so I would have expected this news to wake things up a bit and release the coiled spring.

It's a buying opportunity.

[folderboy] 24/9/2014 08:37

Excellent news - surely worth more than a .25p rise in the sp?

[mortimer7] 24/9/2014 08:32

Very pleased with todays news.
Alkane have positioned themselves well over recent times.

[puffintickler] 24/9/2014 07:45

Confirmation of an outlet for all this extra capacity should propel the share price back up where it belongs.

[rivaldo] 24/9/2014 07:16

Excellent news today...



"Alkane wins National Grid demand side balancing contracts for 2014/2015

Alkane Energy plc ("Alkane") is delighted to announce that it has been successful in winning some of the first demand side balancing contracts for the 2014/15 winter season. These contracts are part of National Grid's Demand Side Balancing Reserve ("DSBR") programme which is designed to provide additional balancing services to the UK electricity market during periods of high demand and will provide a new income stream for Alkane.

The contracts are to supply 56MW capacity to National Grid during periods of high system demand over the winter season running from 1 November 2014 to 28 February 2015. They are among the very first contract awards under interim measures introduced by National Grid to ensure that as System Operator, it has the tools to deal with tightening margins in the coming winters.

This award is a reflection of Alkane's cost effective, flexible and highly reliable operating assets. The current generating fleet provides an ideal partner to National Grid in meeting its security of supply targets and gives Alkane confidence in bidding into the capacity market and other balancing services in the coming years.

The winter of 2014/15 will be the first year of operation of this new initiative with the overall programme being designed to cover the winter peak period from 4pm to 8pm each weekday between November and February. Alkane will receive a two hour warning from National Grid if it is required to generate. Alkane is not expecting any significant additional capital expenditure or operating costs to service this new market, which will be accommodated by Alkane's existing power response fleet.

Neil O'Brien, Alkane's CEO, commented:

"Our power response strategy is built on being a reliable, cost effective and flexible partner for National Grid. I am delighted to see that this strategy is continuing to develop as planned. Starting from a base in the STOR market in 2011 we have expanded operations into winter running and now DSBR. All of this will be serviced from our existing engine capacity which can be swiftly deployed to respond to a range of market demands.""

[woolybanana] 21/9/2014 09:30

But wouldn't the gas be more valuable if it could be converted into high value petroleum products such as aviation fuel. I just wonder if Alkane could not do better, especiaklly in the down months when there is not so much demand for their products.

[rivaldo] 21/9/2014 07:28

Nice late jump on Friday night.

Derek Pain's portfolio in the Independent holds ALK - yesterday he had this to say about the interims and was pretty optimistic going forward as most of us are:



"Another portfolio constituent reporting was Alkane Energy, the power group. It was not as upbeat as Whitbread but still held out hope of a significant improvement. Half-time pre-tax profits came out at £7.6m against £1.3m last time. The huge increase was due to the share exchange sale of its shale sites to Egdon Resources earlier this year.

The group's trading was hit by a number of factors, including the shutdown for a time of one of its highly productive coal mines. But the site is now contributing again and there is every indication that power production will be ramped up in the second half. Certainly activities should enjoy a considerable uplift. After all, National Grid has warned about the possibility of electricity shortages, and any deterioration in supplies would certainly benefit Alkane, which gets much of its revenue from converting gas in abandoned coal mines into power.

It already helps out the grid but most experts think it will have to play an increasing role this winter as some grid locations are temporarily out of action. And in future years there are grave dangers that demand could outstrip supply, with possible blackouts."

[spaceparallax] 19/9/2014 15:39

The frustrating thing is that I've always liked the business and have been fiercely loyal for several years.

[rivaldo] 19/9/2014 15:01

The awards will only vest if "if the Company's share price increases from a base of 39.0p to agreed levels on the vesting date" - the problem is we don't know how challenging these "agreed levels" are.

Pretty immaterial in the scheme of things for the company, but agreed that the sub price should be higher. And the "agreed level" will presumably have to be made public in the Annual Report, so why not publicise them now. Perhaps the vesting levels aren't too challenging...

Anyway, seems a bit over the top if a few punters have sold on the back of that today.

[spaceparallax] 19/9/2014 13:44

These performance awards are a sickening example of money for the boys for simply doing the job that they're no doubt well payed for anyway. Were the subscription price say a 10% discount to mkt share price at the time of award then I'd have no problem but this is pure greed.

In fact the fairest way would be to award options to buy at a % discount to the share price (at the time of award) commensurate with the % advancement of the share price That way their reward would equal their performance and not simply be a huge lump sum gift as was announced today.

[lageraemia] 19/9/2014 12:36

What are they drilling for Alkane?

I thought 3 Nooks had been drilled? I can't find any referrence to drilling work being due.

[rivaldo] 18/9/2014 09:38

News from EDR today:



Extract:

"Egdon Resources plc (AIM:EDR) is pleased to provide an update on the expected timing of the Burton on the Wolds-1 conventional exploration well in UK Onshore Licence PEDL201 located in Leicestershire.

The drilling rig and associated equipment has been demobilised from the Wressle-1 well-site following the completion of that well for future testing operations. The rig will now drill a single well for Alkane Energy plc, which was deferred to enable the Wressle-1 well to be drilled, before then mobilising to Burton on the Wolds. Well-site construction at Burton on the Wolds has been completed and it is anticipated that operations will commence by mid-October."

They stress it's not a frac....

"For the avoidance of doubt the Burton on the Wolds prospect is a conventional oil prospect and our operations will not, either now or in the future, involve the process of hydraulic 'fracking' for shale gas since the area around the Burton on the Wolds prospect has neither the required conditions nor the specific rock-types present for shale gas exploration."

[rivaldo] 18/9/2014 07:28

News from EDR today:



Extract:

"Egdon Resources plc (AIM:EDR) is pleased to provide an update on the expected timing of the Burton on the Wolds-1 conventional exploration well in UK Onshore Licence PEDL201 located in Leicestershire.

The drilling rig and associated equipment has been demobilised from the Wressle-1 well-site following the completion of that well for future testing operations. The rig will now drill a single well for Alkane Energy plc, which was deferred to enable the Wressle-1 well to be drilled, before then mobilising to Burton on the Wolds. Well-site construction at Burton on the Wolds has been completed and it is anticipated that operations will commence by mid-October."

They stress it's not a frac....

"For the avoidance of doubt the Burton on the Wolds prospect is a conventional oil prospect and our operations will not, either now or in the future, involve the process of hydraulic 'fracking' for shale gas since the area around the Burton on the Wolds prospect has neither the required conditions nor the specific rock-types present for shale gas exploration."

[audigger] 18/9/2014 07:18

They have reduced their holding not increased it.