Transerv Energy in a trading halt pending capital raisingMonday,...

Transerv Energy in a trading halt pending capital raising
Monday, January 10, 2011
Transerv Energy in a trading halt pending capital raising

With the announcement of a proposed capital raising, the ASX has granted Transerv Energy (ASX: TSV) a trading halt, with the company's shares placed in pre-open.

Transerv has not yet stated where the potential cash injection will be spent.

Interestingly, just last Friday Transerv announced that Alcoa of Australia, a subsidiary of US$17 billion Alcoa Inc (NYSE: AA), will provide up to A$22 million in funding at the Warro project, a joint venture with Transerv.

As part of a farm-in agreement, Alcoa will fund A$100 million of total project works expenditure to earn a 65% participating interest.

Following the merger of Transerv with Latent Petroleum Pty Ltd, the combined entity will hold a 35% interest in the Warro Gas Project and is free carried for the first A$100 million of expenditure on the project as funded by Alcoa.

Warro is an onshore field in the Perth Basin, with the reservoir covering an area of nearly 7,000 hectares with up to 5 trillion cubic feet (TFC) of gas in place.

If Warro continues to prove successful, gas can potentially supply part of the gas needs for three of Alcoa Australia's Western Australia based refineries, and the wider Western Australia community, at a time when gas supply remains a critical issue.

proactiveinvestors.com.au