Quarterly Cashflow and Activities Report
Perth, Oct 30, 2014 AEST (ABN Newswire) - Raya Group Ltd (
ASX:RYG) provide the Quarterly Cashflow and Activities Report with the following significant highlights:
- Sokoria Geothermal Project PPA signed
- USA Project begins with land acquisitions
- Extraordinary General Meeting all resolutions passed
- 2nd Tranche Placement completed to ASC Resources
- R & D Tax Rebate claim lodged
Sokoria Geothermal Project Power Purchase Agreement Signed
On the 30th September Raya signed a Power Purchase Agreement ("PPA") for the Sokoria Geothermal Project in Indonesia. The agreement signed between PT PLN (Persero) the National Electricity Grid in Indonesia and PT Sokoria Geothermal Indonesia ("SGI"), of which Raya owns 45% and joint venture (JV) partner Bakrie Power 53% is a significant milestone for the Company, as it now has the foundation for a revenue stream that will assist the company with moving to the next phase of project development.
Following the PPA signing the Company received confirmation from the Indonesian Minister of Energy and Mineral Resources granting approval to sell electricity to PT PLN (Persero). Raya and Bakrie are currently in discussions with a number of parties interested in developing the geothermal project.
USA Project Opportunity Underway
On the 23rd July the Company announced it had secured the services of ASC Resources (ASC) to assist in acquiring onshore oil and gas development projects in the USA.
ASC has identified a number of highly prospective areas of land that the Company will target in future exploration of oil and gas in the USA. Raya has been in negotiations with landholders to complete an initial target area suitable for development.
Further details of the USA project will be provided once the target area is completed.
Placement completed
Raya advised to the market on 23rd July its intent to raise up to $750,000 through the issue of up to 50,000,000 fully paid ordinary shares at an issue price of $0.015 per share with a free attaching option exercisable on the same terms as the existing option series at 1.5 cents on or before the 21st July 2016.
The placement was to be completed via 2 separate tranches and was placed to sophisticated investors under Section 708A.
Raya is pleased to advise Tranche 2 of $500,000 has now been completed and all monies have been received from ASC Resources and shares have now been issued.
Extraordinary General Meeting held
On the 7th October an Extraordinary General Meeting ("EGM") was held to put forward a number of resolutions to shareholders. A number of the resolutions related to performance and milestone payments to Peloton Capital and ASC Resources the latter being recently engaged to fast track potential oil and gas opportunities in the USA.
The Company is pleased to advise all resolutions were passed in favour.
Update On Current Projects
Indonesian Geothermal Projects
Raya was pleased to announce it had recently signed a Power Purchase Agreement ("PPA") with PT PLN (Persero) for the Sokoria Geothermal project on 30th September 2014. The PPA provides expected revenue of approximately $750m over the 30 year term and has since received approval to sell Electricity to PLN from the Ministry of Energy and Mineral Resources.
The near term focus will now be on completing a Transmission Study for the Project and ongoing discussions with funding partners.
All other in-country works have been put on hold.
Australian Geothermal Projects
Raya continues to liaise with Department for State Development (DSD) for ongoing restoration work at Salamander-1 well site. The Board recently met to discuss future work commitments with DSD and it was agreed the site will remain on care and maintenance throughout the current work period given the low level of interest currently in the geothermal sector in Australia. Also noted is the future $8m expenditure commitment in 2016 year has now been removed further clearing obligations of the Company going forward.
No other direct works were completed on any of the Australian tenements during the quarter, other than in respect of licence renewals and the like to ensure that all of these tenements remain in good standing.
New Project Opportunities
As announced Raya is working with ASC to identify and acquire onshore oil and gas developments in the USA. Raya has recently progressed one opportunity including acquiring a number of land parcels with future potential of oil and gas development. The Company expects to conclude the initial phase of the transaction in the near future and will advise the market in due course.
Raya currently holds an investment in Tellus Resources ("Tellus"). Tellus is an ASX-listed oil and gas exploration company that generates value for its shareholders by identifying and acquiring properties and projects that have significant discovery and development potential.
Tellus is currently focussed on its Covenant Mondo Project ("the CMP") located in Utah in the USA and preparations are underway to drill the first vertical well and will ultimately hold a 25% working interest in the project.
To view the full quarterly report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-RYG-826272.pdf
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