KUTh Energy updates in half year report
Australian KUTh Energy provides an overview on its activities and the financial status of the company in its half year report to the Australian Stock Exchange.
In a company announcement this week, Australian KUTh Energy (ASX:KEN) provides an overview on its activities and the financial status of the company.
Mainly the company is active in geothermal exploration in Australian Tasmania, Queensland and the Pacific Region. For the Tasmanian project, the company is identifying the hottest granite for Enhanced Geothermal Systems. As previously announced, the drilling campaign for heat flow measurements has been ongoing and is expected to be completed in the current quarter.
KUTh is also advises that it is “preferred tenderer for two geothermal permits in Queensland. The Queensland government has advised that they will be implementing new legislation for geothermal exploration tenements during the first half of 2009 and at that point we will have a clearer picture on the rules and regulations for successful tenderers.
In the Pacific region “the Company has continued its policy of investigating Conventional Geothermal Systems (CGS) in the Region. This strategy is largely based on looking at renewable clean energy systems that can replace the existing diesel systems and to also provide a platform for energy growth in the future. While the pressure on oil prices has come down in recent months the fact remains that reliable energy supply is a key component of growth for these nations and the dependence on unstable imported oil pricing for power generation is an issue.”
KUTh has “applied for several leases in Fiji, Vanuatu and Papua New Guinea with a view to identifying sites
with best potential for early commercialisation. If the right site can be secured and the market economics
established these geothermal plays could provide a faster path to power generation and consequent
revenues to the Company. This could provide a good balance to the much larger EGS program being
developed in Tasmania.”
The company further reports the departure of its COO Malcolm Ward, who had resigned in August 2008. David McDonald has been appointed as Managing Director in November 2008 and took up his new role in January this year.
KUTh Energy had AU$2.8 million in cash as of December 31, 2008.
Source: Company Statement