Hot Rock states increase in resource estimates at Otway Basin

Map with geothermal resources in Victoria (source: Hot Rock Ltd.)

Alexander Richter 29 Jul 2010

Australian Hot Rock Ltd. (ASX:HRL) – in a release – reports “that its total geothermal resource estimate has increased by 170% at the company’s Otway Basin permits in Victoria, boosting Inferred and Indicated Geothermal Resources by 112,700 PJ to now stand at 180,000PJ.

The substantial increase is due to the addition of two new Hot Sedimentary Aquifer (HSA) geothermal reservoirs into the resource estimate, namely Penola and Tantanoola, located to the south-west of Casterton, Victoria.

Mark Elliott, executive chairman, said, “this is a very exciting period for the company, as we incorporate two new reservoirs from our Pretty Hill Formation targets, and advance a number of other prospects to the drilling stage.”

“As we progress our projects, we become increasingly more confident of realising our goal to supply renewable base-load energy into the Victorian grid.”

“The potential is certainly evident, considering that the 6,700 PJ of Indicated Geothermal Resources at Penola could provide sufficient electricity for up to 50,000 nearby households for the next 30 years.”

“Given that we have extensive geothermal exploration acreage in Australia, we believe that there is outstanding potential to further upgrade our resources in the near-term,” he added.

At HRL’s flagship Koroit Geothermal Project near Warrnambool, where HRL has earlier declared a 66,600 PJ geothermal resource, a drilling and testing program has now been finalised.

Backed by a Federal Government grant of $7 million, the company is on track to commence drilling its first production appraisal well early next year.

Hot Rock shares rose by 13% to 8 cents in trading today.”

Source: Company release via ProactiveInvestors