NEW YORK, May 23, 2007 (PRIME NEWSWIRE) -- Wall Street Reporter Magazine has just published exclusive interviews with executives from A-Cap Resources Ltd. (ASX:ACB) and Eagle Rock Energy Partners LP (Nasdaq:EROC) on how their companies are capitalizing on today's energy environment.
Both interviews are now available at http://wallstreetreporter.com in streaming audio, MP3, and text format -- all free of charge.
Dr. Andrew Tunks, Chief Executive Officer of A-Cap Resources (ASX:ACB), tells Wall Street Reporter senior analyst Todd Santorelli that as the worldwide uranium boom continues, he's decided to spin out his company's base metal interests to concentrate on finding new sources of reactor fuel.
"At the moment, because of the worldwide interest in uranium, we are proposing to de-merge the company into A-Cap, which will be solely focused on uranium, and a new company called Botswana Metals," he says. "We expect that de-merger to occur in July or August."
He updated the Wall Street Reporter audience on a variety of topics, including:
-- The company's 7,000 square-kilometer land portfolio in Botswana, which gives it a first mover advantage in that country where uranium is concerned. "We were the first company to recognize the opportunity" since the 1970s, he says. "We believe the prospectivity of Botswana is fantastic for a country that's just grossly underexplored." -- Encouraging results from the latest round of exploration drilling. "Falconbridge Ltd. (now a unit of Xstrata plc (LSE:XTA)) did preliminary work in the 1970s and discovered a total of 13 targets in the area" that A-Cap has now redefined as two "very large" target clusters, Dr. Tunks says. "It's all very shallow mineralization, amenable to large-scale open pit mining." -- Next steps for further delineating the resource, which is currently open on three sides and could contain "potentially some very large tonnage" of uranium oxide. -- Positive investor reception to the company's new focus in the light of macro factors driving uranium markets.
"There's a huge and growing demand for uranium with something like 80 reactors worldwide scheduled for construction over the next few years," he tells Wall Street Reporter. "We feel that we are on track to announce a significant discovery in Botswana over the next few months."
Within the traditional hydrocarbon sector, Joe Mills, newly-minted Chief Executive Officer of Eagle Rock Energy Partners (Nasdaq:EROC) tells Santorelli how his master limited partnership -- which began as a midstream gathering and processing operation -- is moving upstream into outright oil and gas production while maintaining its low-risk MLP profile.
"We will be growing our business there, becoming a producer of oil and gas in the long-life, low-decline, conservative (not high-risk) portion of the upstream sector," he tells Wall Street Reporter. "I think the company's extremely well positioned in our space."
In particular, he provides detail on the following topics:
-- How recent acquisitions take Eagle Rock into new markets in South Texas and Louisiana as well as into new businesses. "Those are areas that have high margins plus very high drilling activity," he explains. "They are mature basins, so there is very little exploration risk." -- The advantages of the entity's combination with Montierra Minerals & Production, which brings proven reserves of about 4.6 BCF of gas and 2.5 million barrels of oil into the company's asset mix and should generate significant EBITDA. "Through that acquisition, we are now a very significant producer," Mr. Mills says. -- The in-house management team's ability to support its expanded operational focus; Mr. Mills himself recently joined Eagle Rock from Montierra. -- Montierra mineral production "through that acquisition we are now a very significant minerals producer", with 420,000 net acres across 17 states, $14-16m EBITDA moving upstream. -- Eagle Rock's continued dedication to the "yield and shield" tax- favored payout model that distinguishes master limited partnerships (MLPs) from other corporate structures.
"We are the first hybrid MLP that is focused on both the midstream business and the upstream sector," he tells Wall Street Reporter. "The upstream sector in MLPs is a fairly new phenomenon. We believe the fundamentals in the sector are right for an E&P MLP."
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About A-Cap Resources Ltd.
A-Cap Resources Limited (A-Cap) is a mineral exploration company with an exploration portfolio that provides exposure to Australia, Botswana and China. It focuses on uranium exploration in Botswana, where it is actively drilling at Mokobaesi an advanced uranium prospect. A-Cap holds over 5000 km2 of prime exploration ground in Botswana, all of which was explored by major companies during the previous uranium price cycle in the 1970s, and all of which has outstanding prospectivity. Recent drilling results suggest that A-Cap have discovered a large uranium mineralized system within the Karoo Supergroup, a well-known host rock to several deposits in Southern Africa. Large scale radiometric anomalies up to 15 km long and 5 km wide indicate the highly prospective nature of this area. A-Cap also holds the exploration rights to some very prospective nickel-copper ground within a well-endowed Eastern Botswana nickel province. These assets are currently being spun out of A-Cap into a new vehicle called Botswana Metals (BML). All A-Cap shareholders will receive a free share in BML on a 2 for 1 basis plus an entitlement to participate in the BML float. A-Cap offers a great early entry to any future uranium exploration success the company may encounter in Botswana. It offers exciting potential for a significant uranium discovery and is substantially unexplored country when compared to its African neighbors with recent and past uranium discoveries in similar geological environments.
About Eagle Rock Energy Partners LP
Houston-based Eagle Rock Energy gathers, conditions, treats, processes and transports midstream natural gas for a customer base that spans the natural gas and natural gas liquids commodity industries. Calling on their individual and collective pools of experience, the members of Eagle Rock's executive team work closely with customers for a single purpose: harnessing the raw power of natural and human resource energy to maximize value for Eagle Rock and its customers. Included in Eagle Rock's diversified client-base are natural gas producers, other midstream processors and gatherers, natural gas liquids companies, fractionators and natural gas consumers. Eagle Rock's reputation for excellence led to an early working partnership with private equity investor Natural Gas Partners and premiere energy industry lenders. From the acquisition and rapid improvements to the Dry Trail Plant, to current interests in the east Texas area and beyond, Eagle Rock is positioned to lead the charge of continued growth fueled by operating efficiencies, excellent relationships with its customers and unparalleled performance.
Forward-Looking Statements
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.