Alpha Prospects Limited
(“Alpha” or the “Company”)
Funding Line for TOGA Agreed
Alpha Prospects Limited, the investment management company focussed on innovative energy companies, is pleased to inform shareholders of an update issued by its investee company Tasmanian Oil and Gas Australia Pty Ltd (TOGA):
“The Directors of Tasmanian Oil and Gas Australia Pty Ltd (TOGA) are delighted to announce that they have secured funding sufficient to enable the Company to achieve its initial goals, namely the exploration and development of gas fields in Tasmania.
The funds are to be provided by a private international investment fund based in London. An initial tranche of A$13.5 million is to be made available, sufficient to complete final preparations and the drilling of two development wells. The sites have been identified and evaluated and are ready to be drilled. The investment company has stated that it is committed to the TOGA transaction, through a Special Participation Vehicle, with up to A$45 million being available to explore for and then develop oil and gas fields in Tasmania, Australia.
Currently there are no commercial scale oil or gas fields onshore in Tasmania but geological research shows a number of formations that should yield commercial quantities of gas and or oil. In total over A$70 million has been expended in identifying the most likely onshore sites. The first site, if successful, based on best estimates would give a gross value of A$11 billion over the life of the field.
There is offshore commercial oil and gas production in the adjacent northern Tasmanian basin (Bass Strait).
Documentation is almost finalised and completion is now expected within the next two months. Once funding is in place it is expected that the current licence application will be approved quickly.
Christopher Foster, Chairman of TOGA commented:
“I am very pleased that having acquired all the background data and analysis that we have found a supportive partner which will fund the drilling of the identified areas. Economic conditions at the commencement of the project, almost two years ago, included a price of oil at less than the half the current level, so the potential value of the project is far greater than anticipated.”