KEN kuth energy limited

australian geothermal news: october

  1. 1,341 Posts.
    Paralana hot rocks project heats up

    Thursday, 2 October 2008

    TRUENERGY’S $57 million farm-in to the Paralana Geothermal joint venture energy project in South Australia’s Flinders Ranges has been granted Foreign Investment Review Board approval from the federal government.

    JV partner Petratherm announced the farm-in agreement with the Hong Kong company in early August, which is subject to conditions including FIRB approval, modifications to JV documents and securing a drilling rig.

    Petratherm said today the FIRB approval and securing the 2000 HP Le Tourneau Lighting drilling rig 828 satisfies the two major conditions under the farm-in.

    The third condition, modifications to JV documentation, is underway and expected to be completed in the next several weeks, the company said.

    TRUenergy farmed into the Paralana project to earn up to 30% interest by investing funds to achieve specific project milestones.

    Meanwhile, Petratherm said the spud date for Paralana-2 well, the first deep well at the project, has been revised to May 2009 after the delivery of rig 828 was delayed.

    According to the company, rig supplier Le Tourneau’s main yard and some of its suppliers in Houston have been affected by damage caused by Hurricane Ike, which passed through the region earlier this month.

    Petratheram also said it has ordered long lead time plant items for Paralana-2 and these are expected to be delivered in late 2008 or early 2009, enabling drilling to begin immediately once rig 828 arrives.

    Also at Paralana, the company said two water wells were drilled at the Paralana-2 well site last weekend.

    Both wells were successfully completed, drilled to about 115m, and exhibited good flow rates and reasonable water quality.

    The company also said it has lodged a formal expression of interest with the Commonwealth for up to a $7 million geothermal drilling grant under the government’s $50 million geothermal drilling program.

    Petratherm expects to be advised if its application has been successful later this year or early in 2009.

    The Paralana project is being developed by partners Petratherm, Beach Petroleum and TRUenergy, and is considered the most commercial geothermal energy project in Australia.

    The project is about 130km east of Leigh Creek in the northern Flinders Ranges and 11km from Heathgate Resources’ Beverley Uranium mine.


 
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