Good points JC. Yes there are other American islands one could get their teeth into. Although the Aleutians is probably pushing the boundaries a bit - there is a TV series called the Deadiest Catch set in that region. Crab and fish with a scattering of madmen and desperate women, is an interesting business model to say the least. Sustainable? I assume they have population centres somewhere there...
Better still, it is a clear business model that is easy to understand: (a) it has a clear client with the ability to pay (e.g. not in PNG); (b) sustainable demand and likely to grow into the future; and (c) the resource is more than likely, and conventional and relatively cheap. As I have mentioned before. Finding a geothermal resource is not hard. Heck, the interior of the earth is now thought to be a some-sort of continual nuclear reaction, hence the active core. Finding one that can be monetised is. And requires a different set of skills.
The fact that they got offer for substaintial funds is also very encouraging. A 600m hole is nothing in today’s terms - done by a standard rig, will be less that eight days double shifting. Although I am not sure what diameter it is supposed to be – and whether they are going to do an explorationary hole first (e.g. HQ sized – US$72-90k + mobilisation cost, which would be quite a lot of there is no rig nearby) then the big one? Or just go with the big hole given the numbers of shorter holes proving evidence of the existing geothermal gradient.
Would have thought a number of geophysics surveys (gravity, magnetics) would be in order too. But again, this data may also exist. I guess we will see in due time. If they do a big hole, not sure on costs, because it will have to be a specialised rig. And mobilisation costs will be steep. but I would have still thought it covered by the grant?
KEN Price at posting:
3.8¢ Sentiment: LT Buy Disclosure: Not Held
