kuth closing in on tasmanian target

KUTh closing in on Tasmanian target
Thursday, 16 April 2009

KUTH Energy has commissioned additional 3D magneto-telluric (MT) studies in its project area to confirm the possible continuation of a prospective zone into its target area and has applied to extend its Tasmanian geothermal acreage.

The company said the new studies will confirm the possible continuation of the Tamar Conductivity Zone (TCZ) – a deeply-buried electrically conductive zone that has been interpreted as a brine-filled fracture zone – into its geothermal target area.

KUTh said the intersection of this zone with its high surface heat flow surface area could provide it with clear additional choices for the location of its deep drilling program.

The company added the coincidence of the two geological features could provide a pre-fractured reservoir that reduced the development risk inherent in engineering the underground heat exchanger.

KUTh has already made progress towards identifying a location for future deep drilling after results from its latest shallow drilling program of 10 holes allowed the company to focus on a 50 square kilometre area in which the zone of very high heat flow coincided with granite buried 3-4 kilometres deep.

This area will be further refined through the geophysical methods including the 3D MT studies and a new aeromagnetic survey. These will be combined with existing data to form the basis for a 3D thermal resource model of the area.

Meanwhile, the company said it had applied for a new exploration licence over an area of about 4000sq.km on the western boundary of its tenement SEL 26/2005 after heat flow data indicated that its target area of high heat flow extended into the region.

KUTh added that the tenement SEL 57/2008 is expected to be granted next quarter.

In the Pacific, the company has been awarded two geothermal licences in Vanuatu that cover 100sq.km each.

KUTh is carrying out a detailed review of the energy market in the country to determine its options for the initial exploration program.

The company said strong support could come from multilateral funding agencies to assist in the development of clean energy projects in Vanuatu.

The company has also applied for three geothermal licences in Papua New Guinea – two on Fergusson Island and the other in West New Britain Province.

KUTh said regulatory and landowner issues had to be overcome before the licences could be actively pursued, and that the company continued to consult with the relevant government bodies.