REG - Kibo Energy PLC - Kibo Subsidiary Announces Business Update

Kibo EnergyAnnouncement

01/07/2024 07:00

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RNS Number : 3825U  Kibo Energy PLC  01 July 2024

Kibo Energy PLC (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

LEI Code: 635400WTCRIZB6TVGZ23

Share code on the JSE Limited: KBO

Share code on the AIM: KIBO

ISIN: IE00B97C0C31

('Kibo' or 'the Company')

 

Dated: 1 July 2024

Kibo Energy PLC ('Kibo' or the 'Company')

 

Kibo Subsidiary Announces Business Update

 

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable energy-focused
development company, announces a business update by its subsidiary Mast Energy
Developments PLC ('MED'), a UK-based multi-asset owner, developer and operator
in the rapidly growing flexible power market.

 

Further details can be found in the full MED RNS  Announcement, which is
available below and at med.energy (https://med.energy/?page_id=3140) .

 

-------------------------

Dated: 1 July 2024

 

Mast Energy Developments PLC ('MED' or 'the Company')

 

Pyebridge Revenue Generation and Potential Acquisition

 

Mast Energy Developments PLC, the UK-based multi-asset owner, developer and
operator in the rapidly growing flexible power market, is pleased to announce
an update regarding business operational matters.

 

Pyebridge Revenue Generation

 

Further to the Company's previous announcement dated 13 June 2024, the 2(nd)
Phase work programme regarding the refurbishment of the first of the Pyebridge
site's 3x Jenbacher gensets has now been successfully completed, within budget
and expected timeline. Since the previous announcement, the refurbished genset
has been re-installed and cold and hot re-commissioning successfully
completed. Resultingly the genset is now running commercially and generating
revenue via the Pyebridge site's PPA with Statkraft, in addition to the
Capacity Market contract gross profit income as previously announced. It is
expected that the refurbished genset will significantly increase the Pyebridge
site's revenue and gross profit. The MED management team in conjunction with
its O&M contractor will monitor the performance of the refurbished genset
carefully to ensure optimal performance. MED expects to provide a further
operational update with specific reference to the initial performance of the
refurbished genset around the end of July 2024. The next step in the 2(nd)
Phase work programme is to commence with the overhaul of the 2(nd) of the
site's gensets, and it is expected that this will be initiated shortly.

 

The Funding Agreement with RiverFort as previously announced has enabled the
successful completion of the first genset's overhaul, and MED is appreciative
of RiverFort's ongoing support as its asset-level strategic funding partner,
in order to grow the business.

 

To give more insight into the work-stream involved in overhauling the genset,
including photos of key stages during the process, which has now been updated
following the successful completion of the first overhaul, please visit the
MED website, "Pyebridge Overhaul Story" webpage at
https://med.energy/?page_id=4466 (https://med.energy/?page_id=4466) .

 

Potential Acquisition

 

MED is in advanced discussions regarding the potential acquisition (the
"Potential Acquisition") of an existing operational 10MW flexible power
generation site located in south-western England. The main rationale behind
acquiring an existing operational site is to achieve a lower investment cost
per installed MW and a shorter timeline to revenue generation compared to a
new-build. The Potential Acquisition will be subject to, inter alia final due
diligence, contract, funding, and the usual various clearances and approvals
associated with a transaction of this nature. Discussions have been positive,
and MED is confident that the Potential Acquisition will be successful, but it
can't guarantee on what terms or on what timeline the Potential Acquisition
will occur.

 

Kibo Energy PLC

 

The MED Board has noted the recent RNS announcements by its significant
shareholder, Kibo Energy PLC ("Kibo"), regarding Kibo's proposed restructure.
MED wants to assure its own shareholders and stakeholders that Kibo's proposed
restructure does not directly affect MED. MED is a separate stand-alone listed
company with its own independent Board of directors, management and with its
own funding capability, and MED is not reliant on Kibo.

 

Pieter Krügel, MED CEO, commented: "We are very pleased that the overhaul of
the first genset at Pyebridge has now been successfully completed according to
plan, timeline and budget. The successful completion of the overhaul of the
first genset has established a proven blueprint to move forward with the
overhaul of the site's remaining two gensets, as well as possible application
on MED's other sites or new acquisitions in due course in order to reduce
capex costs.

 

"MED's funding partnership with RiverFort has enabled and fast-tracked the
work programme at Pyebridge, which will result in increased revenue
generation. RiverFort's ongoing support to MED is invaluable and much
appreciated.

 

"Further, we are excited about the prospect of the Potential Acquisition, and
although there is no guarantee on the current terms or timeline, we are
working diligently to progress and complete the transaction as quickly as
possible.

 

"We are looking forward to updating the market with further progress across
the board in due course."

 

ENDS

 

This announcement contains inside information for the purposes of the UK
version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ('UK MAR'). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

For further information please visit www.med.energy (http://www.med.energy/)
or contact:

 Pieter Krügel   info@med.energy (mailto:info@med.energy)  Mast Energy Developments PLC  CEO
 Jon Belliss     +44 (0)20 7399 9425                       Novum Securities              Corporate Broker

 

_______________________

 

**ENDS**

 

For further information please visit www.kibo.energy (http://www.kibo.energy/)
or contact:

 

 Louis Coetzee    info@kibo.energy (mailto:info@kibo.energy)  Kibo Energy PLC                        Chief Executive Officer
 James Biddle     +44 207 628 3396                            Beaumont Cornish Limited               Nominated Adviser

 Roland Cornish
 Claire Noyce     +44 20 3764 2341                            Hybridan LLP                           Joint Broker
 James Sheehan    +44 20 7048 9400                            Global Investment Strategy UK Limited  Joint Broker

 

Beaumont Cornish Limited ('Beaumont Cornish') is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Johannesburg

1 July 2024

Corporate and Designated Adviser

River Group

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