13/10/2009 - 12:58

New World Energy to open $10m IPO

13/10/2009 - 12:58

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West Perth-based New World Energy plans to raise $10 million through an initial public offer to explore and develop its geothermal permits, and expects to list on the local stock exchange by the end of the year.

New World Energy to open $10m IPO

West Perth-based New World Energy plans to raise $10 million through an initial public offer to explore and develop its geothermal permits, and expects to list on the local stock exchange by the end of the year.

In a statement today, the Ted Ellyard-backed New World Energy said it expects to register its prospectus with the Australian Securities and Investments Commission soon.

It has hired Emerald Partners as advisors to the IPO and Shaw Stockbroking as lead broker.

 

 

The announcement is below:

 


Geothermal energy company, New World Energy Ltd, will go to the market in an Initial Public Offering to raise around $10 million to explore and develop its highly prospective exploration leases in WA and South Australia.

New World Energy has quickly established itself as one of Australia's leading geothermal exploration companies capturing large-scale exploration lease holdings in West Australia's Pilbara region and in the Perth Basin.

New World Energy's Perth Basin exploration leases offer full exposure to the booming Perth metropolitan energy market. They are close to transmission infrastructure and supported by a Memorandum of Understanding with Synergy (WA electricity retailer).

The Company's Pilbara leases cover the majority of the area between Carnarvon and Onslow and another near the iron ore centre of Newman.

The Pilbara is predicted to be Australia's fastest growing electricity market in the next decade, driven by massive new iron ore, Liquefied Natural Gas and other resource sector developments.

A strongly supported seed capital equity issue, just completed, raised over $2 million for New World Energy giving the company the financial capacity to move quickly to implement its geothermal energy exploration and development strategy.

New World Energy expects to list on the Australian Securities Exchange by the end of the year.

It has engaged Emerald Partners as advisors to the IPO and Shaw Stockbroking as lead broker. Both have excellent track records in successful capital raising and ASX listings. Perth Basin geothermal permits

New World Energy's nine Perth Basin permits were recently officially granted and exploration work will commence shortly.

The Company is currently focussed on estimating an Inferred Resource for at least one project area in the northern Perth Basin ahead of planning a deep well to directly test potential reservoir characteristics.

Pilbara region geothermal permits

New World Energy has been accepted as the preferred applicant for nine geothermal permits in the Pilbara region of Western Australia. These permits cover about 43,000 square kilometres, with eight permits between Carnarvon and Onslow and one near the iron ore mining centre of Newman.

The permits cover the most prospective parts of the region. They are close to the major resource and industrial projects in the Pilbara and the rapidly expanding electricity network that links most of the major iron ore mines. The permits are expected to be offered for grant by Department of Mines and Petroleum within weeks.

A detailed analysis of Australia's Geothermal energy sector by leading broker, Morgan Stanley last month concluded that: "Backing renewable "winners" as policy and technology are evolving is risky, but geothermal has investment appeal, and we expect it to play an increasing role in the renewable energy mix. Our analysis of the industry concludes that geothermal is an attractive renewable energy source with the potential for large-scale, cost effective, emissions-free base load power. Origin Energy (ORG), AGL Ltd (AGK), Beach Petroleum (BPT), and 14 other private and publicly listed Australian companies are investing in this opportunity."

New World Energy is a leading Australian geothermal energy company with licences in Western Australia and South Australia. The company has been investigating geothermal in Australia for about three years and is backed by an experienced board that comprises Ted Ellyard (Chairman), John Libby (MD), Ronnie Beevor and Dennis Wilkins.

Geothermal energy is rapidly gaining acceptance as a significant future renewable energy source for Australia. Tapping heat from the earth's crust, geothermal energy is emissions-free, renewable and is forecast to be the cheapest form of renewable energy for large-scale energy production.

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