Panax Geothermal moving on Ngebel Project in Indonesia

Mount Batok, East Java, Indonesia (source: flickr/ taveshala, creative commons)

Alexander Richter 24 Jun 2011

In a company release, Australian Panax Geothermal Limited announces that it “has received strong government and community support in Indonesia for its 165 MW Ngebel Geothermal Project. During a recent site planning and reconnaissance visit in East Java, Panax explored the existing well sites, springs and fumaroles in the project area, and successfully identified neighboroughing additional hot springs in the general Ngebel project area.

The company also met with representatives from local government and surrounding villages who are keen for development activities to get underway and geothermal production to commence.

Panax is committed to building a strong geothermal business in Indonesia with the Ngebel Project being the company’s fourth project in the country.
The company’s combined share of potential generating capacity from its projects in Indonesia currently exceeds 160 megawatts.

Panax will develop the Ngebel Project in a joint venture with PT Bakrie Power, part of the Indonesian Stock Exchange listed PT Bakrie Power and Brothers Group.

The Ngebel project has enormous potential. It is a near-term development project in a strategic location that is underpinned by a guaranteed, commercially attractive power tariff. Exploration has already been undertaken in the project area, including temperature gradient wells, detailed geological mapping, geochemistry works for water and gas, thermal manifestation chemistry, heat flow modeling, heat flow mapping and geothermometry work.

The overall land footprint of the target geothermal area is relatively small with a combination of cultivated paddy fields and mixed plantation.

Lake Ngebel is located near the geothermal field, however, this is not a geothermal feature. It is a fresh water lake used for recreation and as a water source for a small hydropower plant.

Panax is earning a 35 per cent interest in the project through funding of required exploration works before commercial development commences. Both parties will contribute pro rata to development costs.

Panax will be project operator during the exploration and feasibility stages and will also fund the acquisition of extensive existing data and reports on the project. This will include surface development planning, geological studies, geophysical studies, magnetotelluric data and feasibility study. ”

Source: Company release via e-mail