Ovoca Resources PLC
12 July 2002
Ovoca Resources Plc
Joint Venture Announcement
Ovoca Resources Plc (Ovoca) has finalised arrangements with Mercury Holdings Plc
(Mercury) for the formation and operation of a new joint venture company,
Optimum Energy Ltd ("Optimum"), which is 50% owned by each company.
Optimum was formed to exploit opportunities that both parties have identified in
energy generation and storage with particular emphasis on the green energy
sector. Optimum has identified particular storage solutions in an extensive
preliminary feasibility study conducted over the last twelve months with
particular focus being given to Compressed Air Energy Storage (CAES). Optimum's
proposed scheme involves storage of compressed air in deep underground areas
which have high porosity rock (several natural gas storage facilities use
similar underground structures).
While Optimum currently has only nominal assets an extensive work program to
confirm the full detailed feasibility of the specific sites and bring the
project through to the construction phase is already underway. Optimum will not
generate income during this phase.
Ovoca has provided and will provide Optimum support to complete the full
feasibility study. Ovoca has agreed to contribute up to Euro 635,000 as it's
share of the required funding over a phased period of the feasibility study. The
first indications from this study are expected in six months. The initial
funding for the project will come from the proposed disposal of surplus land at
Keel, Co Longford, by Ovoca. It is expected that the net proceeds from this
would amount to approximately Euro 200,000, and the company is looking at
various options to fund the balance.
Frank Buckley, chief executive of Ovoca Resources Plc and John Carroll Ovoca
non-executive Director have been appointed to the board of Optimum, together
with two other Ovoca nominees. The company has not signed service contracts
with the directors
Contacts
Frank Buckley Managing Director + 353 27 70822
John Carroll Director + 353 1 4922936
John O'Connor Company Secretary + 353 1 4912944
Date: 12 July 2002.
This announcement has been issued through the Companies Announcement Service of
the Irish Stock Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange