Whilst the announcement refers to strong companies in the Perth Basin, it is unlikely that this is the only development for securing the future of GRK.
PAX have announced their intent to form a geothermal syndicate.
This same syndicate has been previously considered (with no known outcome in the public domain) by both GRK and PTR.
It wouldn't be difficult to imagine that the three have been in contact regarding pooling certain resources (specifically a suitable rig), though the overlap between the PTR and PAX projects is the highest (shallower drilling through sediment).
If, on the other hand, GRK have chosen to pursue the lower-risk, higher return Spencer Gulf tenements as a priority (fingers crossed), then the depths and targets may more closely align with PAX and PTR, increasing the utility of allowing GRK to join the syndicate.
'Strong companies' is hard to interpret. Many of the companies that are pursuing available GELs are unlisted. Some are listed, but are not exclusively geothermal (for example, Woodside have been known to be actively pursuing suitable GELs).
Increased exposure to shallower projects can only improve the profile of this company. Definitely a step in the right direction.
GRK Price at posting:
0.0¢ Sentiment: Hold Disclosure: Not Held
