Here you go arthinian, See a greenfield project. We'll wont know to much until after the drilling next year. These guys are smart utilising the drill rig with others to save on costs. This is a smart move.
Negotiations for drilling rig are well advanced Key Points �� Hot Rock Limited has programmed to drill a production appraisal well and associated reinjection well at the Koroit Geothermal Project in early 2009 �� Negotiations for a contract drilling rig are well advanced through a drilling club arrangement �� Search for a farm-in partner to fund the drilling program has commenced �� Investment in geothermal energy is enhanced by proposed government emission trading schemes and grants Drill Rig Hot Rock Limited (“Hot Rock”) (ASX code HRL) announced today that it has signed a Letter of Intent (LOI) offering to participate in a drilling club and plans to drill a production appraisal geothermal well followed by an injection well, in early 2009, if flow tests are successful. A rig suitable for drilling a large diameter geothermal well to the depth and specifications required for the Koroit Project has been identified and access to it is being negotiated with drilling company MB Century through a “drilling club” in conjunction with two other geothermal explorers. The drilling club will allow the participants to negotiate a suitable work program for securing the rig and for an appropriate sharing of the rig’s procurement and mobilisation costs. HRL is confident that these negotiations will be completed in June and that the rig should be available to commence drilling on the Koroit Project by the end of the first quarter of 2009. Funding During the Company’s formative period it has adopted a strategy of advancing projects up to drilling stage. HRL intends to fund the cost of the two wells budgeted at approximately $12million by farming in a partner for the Koroit Geothermal Project. This process has commenced and interest has been shown from a number of parties. It is too early to discuss the progress with these discussions but the Federal 1 and Victorian State governments are providing funds on a competitive basis for development of demonstration geothermal plants, and regulations on pending emissions trading which will enhance project returns. This has created interest in the geothermal sector that should be attractive to a farm-in partner.
HRL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
