Panax Geothermal signs MOU on Tirrawarra Project with Santos
Panax Geothermal signs MOU with Santos to investigate the development and generation of electricity from the geothermal exploration licence GEL 281 at the Tirrawarra Project in the Moomba region of South Australia.
In a release, Australian “Panax Geothermal (ASX: PAX) announced the signing of a Memorandum of Understanding with Santos (ASX:STO) relating to investigations into the development and generation of electricity from the geothermal exploration licence GEL 281 at the Tirrawarra Project in the Moomba region of South Australia.
Panax is planning to carry out geothermal exploration activities on its 100% owned GEL 281 licence area with a view to delineating geothermal reserves for the generation of saleable electricity.
Santos may consider purchasing competitively priced renewable energy for in-field electricalgeneration requirements for its operations in the Moomba region.
The Tirrawarra Geothermal Project is characterised by the existence of a “Measured Geothermal Resource” totalling 11,000 PJ – one of only three in Australia, and two of which are owned by Panax and a substantial Indicated Geothermal Resource, amounting to an estimated 30,000 PJ.
Panax has an extensive data base of information on its GEL 281 licence area, including logs of more than 100 petroleum wells as well as extensive 3D seismic cover.
Target temperatures are in the range of 155°C to 160°C, at depths of 2,750 metres to 3,500 metres.
The highest recorded downhole temperature in the tenement is 157°C at 2,919 metres. Panax has recently applied for a grant for an amount of up to $7 million under the Australian Government’s Department of Resources, Energy, and Tourism Geothermal Drilling Program.
Results of the application for this grant funding are expected to be known shortly.”
Source: Company release via Proactive Investors