Perth, Australia, Oct 20, 2014 - (ABN Newswire) - Raya Group Ltd (ASX:RYG.AX - News) holds some of the most prospective geothermal sites available in Australia and Indonesia. Whilst the Geothermal sector has been extremely challenging, Raya has been active with Indonesian joint venture partner Bakrie Power. Activity in the Indonesian Geothermal sector has increased, and the company continues to discuss opportunities with various EPC Groups and Funding parties showing renewed interest in our Indonesian Geothermal projects.
The company continued its direction towards reducing costs including in the administration area and remuneration to better preserve cash as highlighted in the report. Once all previous personnel entitlements and creditors were paid the company was left with a stronger balance sheet through reduction of liabilities.
Raya surrendered its geothermal exploration licenses (GEL) held in the Cooper Basin at the start of the year which further removed an $8m work commitment from its accounts. Restoration and general cleanup was spent on the Salamander-1 well site in February this year which has left the site in good standing order. The site remains on care and maintenance until further interest is revived in the geothermal sector.
Peloton Capital was appointed as Strategic Adviser to the company with the task of locating and unlocking potential opportunities in the energy sector. Peloton Capital has been highly successful in advising many ASX listed companies in the energy sector whilst also supportive of any capital funding requirements and key growth strategies.
Raya was pleased to announce the appointment of ASC Resources as consultants to the company to identify and locate on shore oil and gas opportunities in the USA. The team behind ASC Resources has been instrumental in developing and growing ASX listed energy companies including Austex Oil who have been highly successful in the Mississippi Lime play and now a producer of oil and gas.
The agreement with ASC Resources provides access to Dr Peter Power who has previously served as Chairman of Austex Oil, and Managing Director of Ampolex. Peter has also served as Chairman of the Australian Petroleum Production and Exploration Association and his expertise is highly regarded.
The recent Extraordinary General Meeting (EGM) was held on 7th October 2014 with all resolutions being passed in favor. The resolutions related to ratification of a recent placement of funds as well as performance milestones to be met for both Peloton and ASC Resources. ASC Resources is now concluding its $500,000 investment in the company since receiving shareholder support. Following the EGM, the board has also appointed Mr Geoff Barnes to Chief Operating Officer to assist with the onshore USA project acquisitions and thank him for his support over the last 3 months with much time abroad seeking to fast track potential Oil and Gas opportunities. Raya believes the direction of acquiring and developing USA oil and gas opportunities will lead to strong revenues for the company to continue its planned growth phase.
The Company also recently announced the approval received from the Indonesian Minister of Energy and Mineral Resources to sell electricity to PT PLN (Persero) with forecast revenue exceeding USD $775,000,000 over the term of the agreement. Raya is in Joint Venture (JV) with PT Bakrie Power in the Sokoria Geothermal project via its shareholding of 45% in PT Sokoria Geothermal Indonesia (SGI).
Both parties are pleased the Power Price Agreement (PPA) has been approved and look forward to further refining all financial model requirements; plan further required exploration, and consult with both EPC and potential Funding Partners.
To view the annual report, please visit:
About Raya Group Ltd:
Raya (ASX:RYG.AX - News) is a geothermal exploration and development company pursuing a range of projects in Australia and internationally. Raya is based in Brisbane in Queensland with projects in South Australia, Indonesia and India.
Raya turns geothermal resources into reserves for power generation - identifying, exploring and developing the resources into commercial power stations to generate zero-emission electricity.
Raya owns some of Australia's largest geothermal resources. Our company is pioneering the development of conventional geothermal technology in Australia - targeting geothermal resources where naturally occurring hot water is found in existing reservoirs beneath the earth's surface.
Raya Group Ltd Michael Boyle, Peloton Capital T: +61-3-9642-0655 F: +61-3-9642-5117 E: email@example.com WWW: www.rayagroup.com.au
Raya Group Ltd
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