KUTh Energy with quarterly report
KUTh Energy providing an overview of activities in quarterly report, highlighting activities in Tasmania, application for licenses in Queensland and its activities in the Pacific room, in Vanuatu, Fiji and Papua New Guinea.
In its quarterly report, KUTh Energy (ASX:KEN) is giving an overview of the activities of the company.
The announcement highlights the activities in Tasmania and the new heat flow finds in the compapany’s tenements. The company also plans on submitting an application for the second round of the Geothermal Drilling Program, which provides grant funding of up to AU$ 7 million to approved geothermal drilling projects.
The company is still preferred tenderer for two geothermal exploration license areas in Queensland, while the government there plans on new legislation to administer geothermal exploration and development.
On its pacific strategy, the company continues to look at geothermal prospects where the company can leverage the skills and experience of the team to expand the presence in the sector, particularly with regards to earlier income streams.
In Vanuatu the company has been granted two geothermal exploration licenses by the government. In Fiji, KUTh’s applications for geothermal exploration licenses are open for public comment and the company is waiting for formal notification of results. Furthermore the company has applied for three geothermal exploration licenses in Papua New Guinea via its subsidiary KUTh Energy (PNG) Ltd.
David McDonald, KUTh Energy’s Managing Director, then continues to talk about the funding situation saying that the company is “acutely aware of the need to ensure adequate funding is in place to enable the company to deliver on our projects. Funding is in place for the near- to medium-term exploration programs however further capital will need to be raised for the next step of deep drilling.
The company will continue to seek out potential partners or alliances that are able to add value to the
business propositions being developed by the company. Such alliances or partners should bring skills and resources that can not only assist in the funding of the various projects but also additional technical and/or management and innovation techniques to build on the solid team that has already been established.
At 31 March the company’s cash holdings stood at $2,259,000. In addition to these funds, the company also has a REDI Grant from the Australian government which has an undrawn balance of $1,350,000. The REDI funds are earmarked for allocation against the Tamar Conductivity Zone project which has been outlined earlier in this report. REDI provides funding of 50 % of approved expenditures up to a capped amount of $1.8 million.”
Source: Company report via The Sydney Morning Herald