Alkane snaps up Seven Star Natural Gas
Alkane Energy, the Edwinstowe-based alternative energy company, has bought Seven Star Natural Gas for about £300,000. Alkane also revealed it has raised £940,000 through a round of share issues.
The deal could eventually cost Alkane £1.2m depending on the development of the onshore gas exploration licenses which come with Bridgend-based Seven Star.
Alkane says the two licenses cover previously identified onshore gas sites. Subject to the successful development of the licences, the company said it will start up its first onshore gas to power facility at Calow in 2013.
Seven Star is a wholly owned subsidiary of UK Methane, which is itself a wholly owned subsidiary of UK Onshore Gas.
Neil O’Brien, chief executive of Alkane, said: "We are delighted to have completed this transaction which is consistent with our stated strategy to broaden our gas to power activities. The licences will be added to our project pipeline and provide us with a mid-case contingent resource of 3.5 bcf for the two licences. We believe this opportunity will give us a sound platform from which to develop in the future."
