kuth grabs new block

Geothermal player grabs second Tassie block

Wednesday, January 09, 2008

KUTH Energy has been awarded a second geothermal exploration licence in Tasmania, an 1811 square kilometre area that includes southern portions of the city of Hobart.



Dr Roger Lewis (principal consultant) and Dr John Bishop (Chairman) inspect part of the insulating cover sequence in eastern Tasmania.


Map showing KUTh's eastern Tasmanian tenements

The company said it was targeting Hobart as a potential consumer of 'direct use' geothermal power, involving the use of hot geothermal waters for industrial heating and drying.

Following the acquisition of SEL45-2007, KUTh said it holds 14,171sq.km of exploration licences in Tasmania, making it one of Australia's largest geothermal landholders.

"Like KUTh's existing tenement, SEL45-2007 is serviced not only by the Tasmanian high voltage electricity grid but also the low voltage 'distribution' or retail grid, which means that, subject to off-take agreements, should KUTh establish electricity generation in the tenement, there would be minimal new infrastructure required for power to be sold to customers," the company said.

Interpretation of a mid-year gravity survey shows a broad area of granite buried at depths of 3-5km, considered favourable for 'engineered geothermal power' or 'hot rocks' electricity projects.

KUTh is also undertaking a shallow drilling program across SEL26-2005, to measure heat flow on a systematic basis.

This program is expected to be extended to the newly-granted tenement.