some unanswered questions, page-5

I agree Arthur, it is very promising news indeed. The geology should allow Petratherm to exploit the resource using a reliable and systematic approach across the whole tenement.

Some of the key points from the announcement:
"The quartzite and underlying Benagerie Sequence is well defined on the 2D seismic and shown to be regionally extensive across the Paralana tenements at the desired reservoir depth."

"inflow of geothermal over-pressured brines gives strong indication for the presence of natural and permeable fracture systems at the target reservoir depth."

"There is some evidence from Paralana 2, that fluid zones are preferentially enhanced along fractures/faults associated with the dolerite dykes."

My interpretations:
The fracture stimulation process should be of lower risk and higher yield than originally anticipated due to the naturally occurring fractures and faults already at the target depth. Instead of having to create the fractures, fracture linking and interlinking into the existing over-pressured zones can be achieved.

The fluid zones preferentially enhanced along the fractures associated with the dolerite dykes should provide for higher flow rates. This news is encouraging, as the amount of power ultimately generated is a function of the heat of the water but also the volume of water (flow rate). Petratherm have based their feasibility modelling on a very conservative flow rate of 75 litres per sec. More information will be available from the stimulation program data but I think they would now be expecting to achieve a flow rate at least 100 litres per sec.

One area that has not been touched on yet but is very important to the viability of the project, is water loss. If a closed loop cannot be achieved because of water loss, the system pressure depletes and the water loss has to be balanced from another water source. As there are naturally occurring over-pressured brines in existing fracture systems at the target depth, there should be significantly reduced risk of water loss.

As the geology appears to be regionally extensive across the Paralana tenements at the desired reservoir depth, this makes it much easier for Petratherm to exploit the resource using a standard approach. This is very important for the longer term viability of the project.

All very good news and I am looking forward to the stimulation program.

Systemiser.