Torrens Energy to raise $6m in IPO - WA Business News

Torrens Energy to raise $6m in IPO -


...... The slow radiogenic decay which heats these rocks is a nuclear phenomena -- but don't tell the green anti-nukers this though .......

West Perth-based geothermal energy exploration company Torrens Energy Ltd has announced plans to raise $6 million through its initial public offer, using the money to assess its exploration portfolio. The full text of a company announcement is pasted belowOne of Australia's most unique and timely public share offers, a $6 million Initial Public Offering (IPO) for Australian geothermal exploration company Torrens Energy Limited, opens today (Tuesday, 27 February 2007). The capital raised from the IPO will be applied to the initial exploration of the Company's large GEL land position in South Australia.Unusually hot rocks are known to occur in South Australia. These rocks are a vast untapped reservoir of energy, which can be used to generate electricity. Cold water is pumped into the ground, with superheated water being returned to surface which is "flashed" into steam, to drive a turbine, to generate clean, reliable electricity. The Company's portfolio of geothermal exploration licences near Adelaide in South Australia capitalises on the unique combination of the right geological conditions coinciding with infrastructure and markets.The Company plans to identify geothermal targets for development, to become a dominant player in efficient, reliable electricity generation in Australia, using sustainable, renewable, emissions-free geothermal energy. What sets Torrens apart is its proximity to infrastructure and markets, being the first Company to recognize the geothermal potential which exists just kilometres north of Adelaide, on the National Power Grid.Torrens has already completed work that has confirmed the prospectivity of its licence areas; drill hole temperature data and rock thermal property measurements completed and independently verified, show temperatures of 200oC modelled to 5000m depth, on all of the Company's tenements in South Australia.Headed by a management team experienced in HFR geothermal exploration, corporate management, research and project development, Torrens Energy's business model has already attracted strong endorsement, demonstrated by a $100,000 matching funding PACE (Plan for Accelerating Exploration) grant from the South Australian Government and great interest from the market in its up coming IPO.The IPO comprises the offer of 30 million shares at 20c each, with one free listed option for every two shares, to raise $6 million. Perth- and Melbourne-based Cygnet Capital is Lead Manager to the issue have acknowledged a high level of interest in the IPO.Torrens will use the IPO funds to initially assess a portfolio of 14 Geothermal Exploration Licences (GELs) known to contain both an active heat source and an insulating sedimentary "blanket" of rocks. The GELs, covering three separate project areas, are ideally located, close to South Australia's major transport, domestic infrastructure and Australia's national power grid. Torrens Energy's Chief Executive Officer and geothermal expert, Mr Chris Matthews, said the IPO provided Australian investors with a unique opportunity to gain exposure to exciting commercial opportunities provided by the significant and growing demand for additional power generation across Australia, while at the same time contributing to a reduction in Australia's greenhouse gas emissions."For the first time we have been able to show the potential of these (GEL) areas to produce viable temperatures at accessible depths, and have confirmed their prospectivity through detailed thermal test work, heat flow estimation and temperature modelling," Torrens CEO, Chris Matthews said."Most geothermal exploration in Australia to date has been conducted in remote areas, but Torrens' highly prospective exploration licences are close to established electricity markets already experiencing supply pressures," Mr Matthews said. "Torrens' potential to make a real difference in the alternative energy market has already been recognised by the South Australian Government with the awarding of a $100,000 PACE Grant, and the Federal Government is also showing it strongly supports renewable energy development, last week announcing a $5 million grant for a hot rocks project in the Flinders Ranges, South Australia."Australia is a standout producer of greenhouse gasses per capita, which as a socially responsible nation we should not tolerate. There has been a resurgence in interest in clean alternatives in Australia, and the investing public is rushing in to get exposure in this new industry. Our view is that of the sustainable energy sources, such as solar, wind and waves, geothermal energy stands alone in its ability to offer large scale, 24/7 baseload power with no fuel, no emissions, and no waste. It has also been assessed as being more cost efficient, under a carbon levy system, than most traditional forms of fossil-fuel based energy production."Torrens' IPO is offering 30 million shares to raise $6,000,000 at an offer price of 20 cents each, with one free attaching listed option for every two shares. The current Prospectus timetable has both the Priority and Public Offers opening on the 27th of February 2007, with closing dates to be 12th of March 2007 for the Priority Offer and 21st of March 2007 for the Public Offer. It should be noted that the Torrens Board reserves the right to close off early in the event that share allocation is filled.