REG - Mast Energy Dvlpmts. - Business Update

Mast Energy DevelopmentsAnnouncement

21/05/2024 07:00

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RNS Number : 1765P  Mast Energy Developments PLC  21 May 2024

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

LEI :213800HFVHGJ9YGO9F71

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

('MED' or 'the Company')

 

Dated: 21 May 2024

 

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

 

Business Update

 

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 and corporate matters.

 

Pyebridge

 

Further to the Company's previous announcements dated 11 April 2024, 26 April
2024 and most recently 7 May 2024 respectively, Pyebridge has received the
2(nd) Advance from RiverFort under the Funding Agreement, and it has made the
associated payments to the site's O&M contractor, Cooper Östlund in terms
of the Engineering Works contract regarding the full long-block overhaul of
the first genset. The replacement genset has been shipped from the supplier,
PowerUp in Austria, and is expected to arrive on site shortly. The necessary
preparatory works on site to replace the existing genset with the refurbished
unit are well advanced and on track. The expected timeline to completion of
the work and commercial operations date of the refurbished genset as
previously announced remains on schedule. The 2(nd) Advance also enables the
acceleration of the overhaul of the first genset, and once the work is
completed will result in a significant increase in additional revenue from the
Pyebridge site and more importantly sooner than expected.

 

In the meantime, the site's other two gensets remain operational and will
continue to generate revenue via its PPA with Statkraft. Additionally,
Pyebridge will also keep receiving its current Capacity Market contract income
from the government.

 

 

Project Capex Funding

 

Further to the Company's previous announcement dated 11 April 2024, most of
MED's sites under development are either ready for construction, or already in
early-stage construction. The progression of construction and commercial
operations are subject to securing project capex funding. In order to address
this key next step in respect of these projects' development lifecycle i.e. to
get each project into production and generating revenue, MED is actively
progressing discussions with various potential debt and equity funders. These
discussions include banking institutions that have shown interest in providing
funding.

 

JVA with Proventure Termination Update

 

Further to the Company's previous announcement dated 28 February 2024, stating
Proventure's failure to remedy its material breach of the JVA, together with
the exhaustive correspondence and actions on MED's part to accommodate and
resolve the persistent delays by Proventure to fulfil its obligations under
the JVA, the MED Board has decided to terminate the JVA with Proventure as
previously announced. Under the provisions of the JVA and subsequent JVA Deed
of Termination, MED is entitled to receive, and Proventure has an obligation
to pay default penalties, in the sum of c. £435,000 (the "Default
Penalties"). The Default Penalties have formally been accepted by Proventure,
but regrettably none of the required Default Penalties, nor any part thereof
have been paid to date. The Company subsequently reviewed the matter with its
legal advisers, and is currently considering various options that will allow
the Company to pursue the matter by taking appropriate further action against
Proventure, its CEO, Mr. Srinivas Kona and other directors aimed at but not
limited to recovering the Default Penalties.

 

In conjunction with the above, MED is also considering pursuing its available
options for legal recourse against the initial JVA lead-investor, Seira
Capital and its CEO, Mr. Srinivas Tangirala and other directors.

 

 

Pieter Krügel, MED CEO, commented: "We are pleased that the overhaul of the
first genset at Pyebridge is progressing well and on schedule. We are looking
forward to completing the overhaul work within the expected timeline, and to
move forward with the overhaul of the remaining two gensets. In the meantime,
Pyebridge is operational and generating income.

 

"Concurrently we are actively progressing discussions with various interested
funders regarding the capex funding of MED's construction-ready sites, in
order to get each project into production and revenue generation 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        CEO

                                                           Developments PLC
 Jon Belliss     +44 (0)20 7399 9425                       Novum Securities   Corporate Broker

 

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