TIDMKIBO
RNS Number : 0738D
Kibo Energy PLC
21 June 2019
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 20 June 2019
Kibo Energy PLC ('Kibo' or the 'Company')
MAST Energy Developments Limited: Successful Closing on
Acquisition of Bordersley Flexible Power Site
Further to its RNS dated 21 May 2019, Kibo Energy PLC, the
multi-asset, Africa focused, energy company, is pleased to announce
an update on its 60% owned subsidiary, MAST Energy Developments
Limited ('MED'), a private UK registered company targeting the
development and operation of flexible power plants to service the
UK reserve power generation market.
Highlights
-- MED has completed acquisition of Bordersley Power Limited
('Bordersley'), a Special Purpose Vehicle ('SPV') which will
comprise a 5MW gas-fuelled power generation plant targeting
commercial commissioning end Q1 2020
-- Consideration of GBP175,000 in cash and reimbursement to the
SPV vendor GBP2,000 in costs related to the Gas Connection
Offer
-- Louis Coetzee and Pieter Krügel to be appointed as directors
of Bordersley (existing directors and officers of Bordersley to
resign)
-- Multinational Clarke Energy selected as preferred EPC contractor
-- Encora Energy Limited selected as preferred owners engineer
-- Negotiations underway with Statkraft Markets GmbH for a power purchase agreement
Louis Coetzee, CEO of Kibo Energy, commented, "As we progress
Kibo along its journey into the Energy market, we discover many
opportunities aligned with our strategy. As early as November 2016,
the Carbon Trust, in collaboration with the Imperial College
published in their report, "An Analysis of Electricity System
Flexibility for Great Britain": "The UK electricity system is
undergoing significant changes to provide electricity that is
secure, affordable and low carbon. To achieve decarbonisation, the
electricity system will integrate increasing amounts of variable
renewable and inflexible nuclear generation, whilst enabling the
electrification of the heat and transport sectors. These changes
will increase the need for system flexibility. At the same time
traditional sources of flexibility, such as
conventional coal and gas generation, will reduce in capacity.
Therefore, new sources of flexibility will be needed to adequately
meet demand and ensure system stability".
This initial strategic acquisition made by MED is a key
milestone as it advances its strategy to become a key player in the
UK flexible power generation market. Preparations, including the
appointment of an EPC contractor and owners engineer, as well as
commercial discussions, are well underway ahead of MED's target of
first operations in late Q1 2020."
Sale and Purchase Agreement
As part of its strategy to develop and operate flexible power
plants to service the Reserve Power generation market, MED has
completed on a Sale and Purchase Agreement ('SPA') to acquire
Bordersley, an SPV, from Balance Power Projects Limited ('Balance')
as referred to in the RNS of 21 May 2019.
Bordersley will comprise a 5MW gas-fuelled power generation
plant supported by a Grid Connection Offer and a Gas Connection
Offer, which, subject to successful financial close, notice to
proceed, and no external connectivity delays, is being targeted for
commercial commissioning end Q1 2020.
As part of the Bordersley development, Clarke Energy, a
multinational specialist in distributed power generation solutions,
has been selected as the preferred Engineering, Procurement and
Construction ("EPC") contractor; a proposal is being evaluated and
contract negotiations underway. Additionally, contract negotiations
underway with both Encora Energy Limited, which has been selected
as the preferred owners engineer, and Statkraft Markets GmbH for a
power purchase agreement ('PPA'), regarding the implementation and
execution of the MED desired trading and optimisation strategy.
**ENDS**
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014.
For further information please visit www.kibo.energy or
contact:
Louis Coetzee info@kibo.energy Kibo Energy PLC Chief Executive Officer
Andreas Lianos +27 (0) 83 4408365 River Group Corporate and Designated
Adviser on JSE
------------------- ----------------------- -------------------------
Ben Tadd / +44 (0) 20 3700 SVS Securities Limited Joint Broker
Tom Curran 0093
------------------- ----------------------- -------------------------
Jason Robertson +44 (0) 20 7374 First Equity Limited Joint Broker
2212
------------------- ----------------------- -------------------------
Andrew Thomson +61 8 9480 2500 RFC Ambrian Limited NOMAD on AIM
------------------- ----------------------- -------------------------
Isabel de Salis +44 (0) 20 7236 St Brides Partners Investor and Media
/ 1177 Ltd Relations Adviser
Gaby Jenner
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Notes
Kibo Energy PLC is a multi-asset, Africa focused, energy company
positioned to address the acute power deficit, which is one of the
primary impediments to economic development in Sub-Saharan Africa.
To this end, it is the Company's objective to become a leading
independent power producer in the region.
Kibo is simultaneously developing three similar coal-fuelled
power projects: the Mbeya Coal to Power Project ('MCPP') in
Tanzania; the Mabesekwa Coal Independent Power Project ('MCIPP') in
Botswana; and the Benga Independent Power Project ('BIPP') in
Mozambique. By developing these projects in parallel, the Company
intends to leverage considerable economies of scale and timing in
respect of strategic partnerships, procurement, equipment, human
capital, execution capability / capacity and project finance.
Additionally, the Company has a 60% interest in MAST Energy
Developments Limited ('MED'), a private UK registered company
targeting the development and operation of flexible power plants to
service the Reserve Power generation market.
Johannesburg
20 June 2019
Corporate and Designated Adviser
River Group
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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