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CALGARY, May 30 /CNW/ - Alter Nrg Corp. (the "Company" or "Alter Nrg") is pleased to report on its corporate activities and financial results for the three months ended March 31, 2007. The following are the highlights for the first quarter of 2007 and the period up to May 29, 2007:
- Completed an Initial Public Offering (IPO) of 15,555,556 common
shares at the offering price of $2.25 per share for gross proceeds of
$35 million.
- Exercise of the 15% over-allotment option by the company's agents
resulted in additional gross proceeds of $5.2 million
- Closed the US$29 million acquisition of Westinghouse Plasma
Corporation
- Effected a re-organization of Alter Nrg from a trust structure to a
corporate structure
- Listed Alter Nrg's Common Shares on the TSX Venture Exchange under
the symbol "NRG"
- Announced a five-year technology license agreement with NRG Energy,
Inc. (see April 26, 2007 press release)
- Commissioned an independent evaluation of the Fox Creek coal assets
which indicated 770 million tonnes of coal resource in place
- Increased market capitalization from $17.4 million at year end 2006
to $117.0 million on May 22, 2007
FINANCIAL RESULTS ($)
Mar. 31, Dec. 31,
2007 2006
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Total Assets 11,936,818 11,919,896
Total Liabilities 610,641 663,717
Total Equity 11,326,177 11,256,179
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Three months Period from
ended inception
Mar. 31, Mar. 9 to
2007 Dec. 31,
2006
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Net Loss (311,382) (1,657,891)
Net Loss per unit - basic and diluted (0.02) (0.16)
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For the complete financial statements please view Alter Nrg's First Quarter Report for 2007 at www.alternrg.ca or visit www.sedar.com.
Alter Nrg is pleased to welcome Dr. Pieter van Nierop who is joining the company as Senior Gasification Lead on June 1, 2007. Dr. van Nierop has 15 years experience with Sasol, an international oil, gas and petrochemicals company and world leader in gasification technology, headquartered in South Africa. Dr. van Nierop worked in various senior business and technical roles at Sasol, including as Managing Director responsible for the Sasol-Lurgi Technology Company. In Calgary, he has worked with the Alberta Research Counsel, Bantrel and most recently Shell Canada - all in lead gasification roles. Dr. van Nierop has his D.Sc. in Chemistry and an MBA.
Management is pleased to report on a number of achievements in Alter Nrg's first interim report as a publicly traded company. Four important initiatives completed in April of this year were the main focus of the Company's efforts throughout the first quarter of 2007. These initiatives include Alter Nrg's Initial Public Offering (IPO) that raised a total of $40.2 million; the corporate acquisition of Westinghouse Plasma Corporation (WPC) that has equipped the company with a world-class proprietary gasification technology; a re-organization to provide the most efficient corporate structure; and listing of Alter Nrg's shares on the TSX Venture Exchange.
In Management's view, the timing of Alter Nrg's entrance into the marketplace is ideal as market conditions favour gasification solutions. The social and political will to address environmental concerns continues to gain momentum. Gasification is a commercially proven and reliable solution that is producing energy around the world - including 30% of South Africa's gasoline and diesel fuels. Now, gasification is coming of age in North America and Alter Nrg is positioned to capitalize on an opportunity rich environment. The company's website at www.alternrg.ca has a short video entitled "What is Gasification?" that provides greater detail and is worthwhile to view.
Alter Nrg's successful acquisition of WPC led to an important growth opportunity: the five-year technology licensing and partnership agreement with NRG Energy, a leading electricity generator in the US with a $10 billion enterprise value. Under the agreement, Alter Nrg will benefit from WPC technology sales to NRG Energy and, through an optional equity interest, has the potential to earn recurring revenues from future NRG retrofit projects. Management is optimistic that the NRG agreement will be the first of many opportunities to form mutually beneficial strategic partnerships.
To support the company's rapid growth Management continues to build the Alter Nrg team, and in the first quarter added three employees in the areas of Business Development and Investor Relations bringing the employee count to 10 at Alter Nrg. On June 1, 2007 a Senior Gasification Lead with 15 years of experience with Sasol (a leading gasification company) will be joining the Company. Management also welcomes the 7 full-time technical people that have joined Alter Nrg's team from the WPC acquisition. WPC will continue to operate as a wholly owned subsidiary with Alter Nrg providing direction on marketing and business development activities.
Alter Nrg has a unique vision, a strong team, a leading technology, a key resource asset and financial strength - the company is well positioned for the significant growth opportunities that lie ahead.
The primary use of proceeds from Alter Nrg's IPO was to satisfy the cash component of the US$29 million acquisition of WPC, a private gasification company based in the United States which has patented plasma gasification technology. The consideration for the acquisition was US$22 million cash and US$7 million in Alter Nrg common shares at the $2.25 IPO price. The WPC acquisition has a number of important strategic benefits to Alter Nrg:
- An existing cash flow stream that has additional revenue potential
through increased business development efforts and additional product
applications
- Secure access to an industry leading and commercially proven plasma
gasification technology
- Direct access to research and development capabilities
- Ability to provide a broader gasification solution for customers
through the combination of WPC's plasma gasification experience with
Alter Nrg's engineering, construction and balance of plant expertise
This acquisition of a world class gasification technology provides Management with the flexibility and control to better implement Alter Nrg's business plan and is anticipated to be an accretive acquisition for shareholders. For additional information and photos of WPC technology in operation please view Alter Nrg's First Quarter Report for 2007 at www.alternrg.ca or www.sedar.com.
Alter Nrg commissioned an independent evaluation by Norwest Corporation of the company's Hinton coal property located in west-central Alberta. The evaluation, prepared in accordance with National Instrument 43-101 and dated April 30, 2007, reports 106 million tonnes of measured and indicated coal in-place for the Hinton property. The Hinton property and the previously assessed Fox Creek property together provide Alter Nrg with 876 million tonnes of measured and indicated coal in-place. To view Norwest's report on the Hinton property please visit www.sedar.com.
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ASTM Group In-Place Surface Mineable Coal Resources from Surface
Down to 12:1 Strip Ratio (tonnes)
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Measured Indicated Inferred
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HV C Bituminous 47,032,000 2,557,000 161,000
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Total 49,589,000 161,000
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ASTM Group In-Place Surface Mineable Coal Resources from 12:1
Down to 20:1 Strip Ratio (tonnes)
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Measured Indicated Inferred
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HV C Bituminous 33,339,000 23,838,000 8,559,000
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Total 57,177,000 8,559,000
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Measured and Indicated Inferred
Total Resources ------------------------------------------------------
106,766,000 8,720,000
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OUTLOOK
Alter Nrg is now looking to monetize the assets the company has assembled.
In the coming quarters, the focus will be on short-term strategic objectives:
- Through enhanced business development activities and marketing
efforts, work to increase WPC's cash flow
- Using the WPC commercially proven technology, pursue development of a
commercial-scale waste-to-energy facility over the next 18 to 24
months
- In partnership with NRG Energy, pursue coal power plant retrofit
projects over the next 18 to 24 months
- Continue to build strategic relationships and identify potential
accretive acquisitions that add long-term value to the company
Over the longer term, Alter Nrg will look to:
- Replicate waste-to-energy projects, prioritizing high tipping fee
environments in Ontario and the US
- In partnership with NRG Energy, replicate Coal Power Retrofits
drawing from over 300 targets identified in the US
- Target the oilsands market where gasification has the potential to
displace up to 6 bcf/d of natural gas
- Pursue Coal to Liquids projects with the company's existing resource
base that is capable of fueling 50,000 bbls/d for 50 years with
successful implementation of a gasification facility
- Continue business activities that support WPC revenues and that will
develop new markets
Alter Nrg is a development-stage entity pursuing alternative energy solutions to meet the growing demand for environmentally responsible energy in world markets. The Company's vision is to become a North American leader in the development of innovative gasification projects for the commercial production of energy. The Company's objective for the next decade is to become a senior energy producer of hydrogen, syngas, and transportation fuels such as biodegradable sulphur-free diesel, ethanol, steam and electricity, all of which are fundamental products for the world's growing energy needs.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Certain statements in this disclosure may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this disclosure, such statements use such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", and other similar terminology. These statements reflect the Corporation's current expectations regarding future events and operating performance and speak only as of the date of this disclosure. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this disclosure are based upon what Management believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this disclosure, and, subject to applicable securities laws, the Corporation assumes no obligation to update or revise them to reflect new events or circumstances. This disclosure may contain forward-looking statements pertaining to the following: capital expenditure programs; supply and demand for the Corporation's services and industry activity levels; commodity prices; income tax considerations; treatments under governmental regulatory regimes.