June 18, 2007 - 11:50AM AdvertisementAdvertisement
Spanish media and energy interest Editorial Prensa Iberica Communications (EPI) has snapped up just over one per cent of Australian geothermal energy producer Petratherm Ltd.
EPI, which is Spain's biggest media company and has media, property and energy interests in the United Kingdom and Australia, took up 750,000 Petratherm shares in its recent placement.
Petratherm aims to become the country's first electricity generator from geothermal sources by 2010, using sources from its Paralana project in the Flinders Ranges, South Australia.
"The initial holding is a first step only and the Spanish group is keen to increase its stake in Petratherm, but only to a point of being a long-term cornerstone and alliance investor and partner, not a majority stakeholder," Petratherm's managing director Terry Kallis said.
EPI's Australian representative, Global Intertrade Pty Ltd managing director Manuel Ortigosa, described the company as a stand-out in the hot rocks industry internationally.
"We not only like its hot rocks leadership role in Australia, but Petratherm has also taken the first step to become involved in Spain's fledgling geothermal sector, and this has significant appeal to us," Mr Ortigosa said.
"It is a natural complement to EPI's ability in our home country to open doors in government and energy and infrastructure project development corridors, and so be part of a new world electricity generation opportunity."
Hot rocks energy is a renewable energy source that extracts heat from subterranean granite by circulating water through them and flowing it into a geothermal power station.
Last December Petratherm announced a $30 million energy joint venture with Beach Petroleum Ltd for the Paralana project, which will help provide energy to the Beverley uranium mine near the site.
At 1111 AEST Petratherm's shares were up 11 cents to $1.16.
PTR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
