re: Ann: Outstanding Results from Seismic Sur... The additional...

re: Ann: Outstanding Results from Seismic Sur...
The additional seismic survey results helps to give a more comprehensive understanding of the extent of the geological structure around Parachilna and is another step in derisking the project. Since a fullscale power generation project involves drilling arrays of wells it is important to know that there is a significant area of development. No doubt TEY will shoot this info off to AGL to become part of their CWN information package.

TEY is waving this as a carrot to AGL of course to give them incentive to take up their option of paying for one deep well for a 50% stake in the project. AGL on the other hand may be in no hurry to do so. It realises that RECs have a very low price at the moment and further, that GDY has not yet demonstrated the method of achieving a multiple fracture reservoir for an EGS system. (Hurry up GDY, others are waiting on you!) AGL may even be considering an alternative that it would be better to have a JV with PAX on a safer HSA project. There is no reason of course why AGL could not support two or more geothermal projects simultaneously. Gaining a 50% ownership of the project for an outlay of just $15 M is very cheap indeed. GDY and PTR negotiated a much better contribution in their JVs. However, the geothermal funding climate has changed and TEY now needs AGL more than ever.

As an aside, I can't help noticing that the location for the deep well, Elendil 1, has moved about 12km W.N.W from that specified on 19 Oct 09.

Juke