News

Panax Geothermal with quarterly report

Alexander Richter 24 Apr 2009

Panax Geothermal gives an update on its activities in its quarterly report, including details on Penola, Kyrgyz Republic, Slovakia and the Puga project in India.

Panax Geothermal gives an update on its activities in its quarterly report, including details on Penola, Kyrgyz Republic, Slovakia and the Puga project in India.

Activities during the quarter, so the company, were focused on advancing the Limestone Coast Geothermal
Project, namely the completion of: “Geothermal Resource” assessments covering Panax’s entire tenement position of more than 3,000 square kilometres; and an independently reviewed Pre-Feasibility Study.

Furthermore the company informs about having acquired a number of geothermal exploration licenses in the Moomba Region in Australia, where HDRPL is to carry out an independent Geothermal Resource Assessment of that tenement.

On its Puga Project in the Himalayan geothermal province in Jammu Kashmir/ India, the company’s partner Geosyndicate Power Private Ltd. announced a delay in the permitting process, but that first steps have been taken in the development of a transmission line between Puga Valley and the town of Leh, center of the Ladakh district.

In Slovakia, Central Europe, the company visited representatives of its joint venture partner Geopark and Geocom (consultancy assisting GeoPark and Panax in Slovakia) in Kosice. There the company evaluates historical oil and gas information to allow a positive consideration for geothermal exploration and develoopment for electricity generation in the country.

In the Kyrgyz republic, Panax completed a study comparing structural geological setting of the Yangbajing eothermal area in Tibet (in production) and the Puga project in Kashmir/ India, both located in the Himalayan geothermal zone, with that of the extreme Inylcheck geothermal anomaly, located in the Tien Shan Mountains in the east of the country. Findings of the study are encouraging.

Follow-up work is being prepared. There the company works together with Kentor Gold, a mining company, and has jointly expressed an interest  to the World Bank for grants for project itself, US$ 4 million for the Inylcheck Project and US$ 2 million for a Tajikistan geothermal exploration project.

Both submissions have been accepted and Panax/ Kentor have been invited to submit a full application for a GeoFund Grant.

Financially, “at the end of the quarter, the company’s cash position stood at AU$ 6.25 million, a decrease of AU$ 0.75 million over the previous quarter. The decrease is largely attributable to costs associated with: on-going well design and procurement costs for long lead items (well-head) relating to the drilling of Salamander 1, export reports for the establishment of the measured geothermal resource over the Penola Trough and the completion of the Inferred Resource calculations for the Tantanoola Trough, and regular corporate and administration costs.”

Source: Company’s quarterly report via Sydney Morning Herald