ALPHA PROSPECTS PLC
(“Alpha” or the “Company”)
Tasmanian licence application submitted
Alpha Prospects plc, the investment management company focussed on companies with fast growth and/or recovery prospects, is pleased to inform shareholders that the company is part of an international consortium that has submitted on the 22 January 2016 an application for an oil and gas exploration licence in Tasmania (ERA981) to the Mineral Resources Department of the Government.
The company making the application is Tasmanian Oil and Gas Australia Pty limited (“TOGA”). The main shareholders of which are: Alpha Prospects Plc, Derlite Limited, Hong Kong and Empire Energy International Corporation Inc., USA. All intellectual property, survey results and other work carried out on the licence area has been transferred from Tasmania Oil and Gas Limited to the new entity.
The body of work done demonstrates that there is a high probability of oil and gas, primarily gas, being found within the licence area being applied for. The independent report produced provides a very detailed analysis of the area under consideration. A number of key staff have been contracted to join TOGA when the licence is granted and exploration work can begin. Likewise a number of potential contractors have indicated a willingness to support this new venture.
In spite of the current turbulent market conditions – both in the oil/gas markets and the capital markets – we have received confirmation from our indicative conversations with investors that this project is one worth serious analysis given the underlying opportunity. Investors have been identified and, subject to the licence being conditionally offered, we are confident that they will fund the drill programme envisaged. We have interest from a number of parties, in particular in the UK and the US, and it is likely that TOGA itself will seek a listing either in Australia or the USA in due course.
Once the licence has been granted it is the intention to find industry partners for the project and it is expected that a farm out of the project to a major oil company will occur. Prospective investors are aware of the long term commitment the project requires and have indicated that they are eager to have a full role in this potentially very lucrative project.
Further announcements will be made in due course.