Australia: credit crunch forces energy exploration stop

Alexander Richter 17 Dec 2008

Four energy exploration projects in south-west Victoria, Australia, have been put on the backburner because of the global financial crisis. The company Hot Rock Ltd. has five permits for geothermal exploration in the region, but it says it only has enough funding for one.

Managing director Mark Elliot says the company has decided to focus its investment on building a geothermal power plant near Koroit. He says a successful project there will help to attract investment in their other geothermal projects.

“We have to get one under our belt to demonstrate to the investment community that the potential is really there and we can deliver on it,” he said.

“So once we get one completed and this drilling program should be completed by next year, then we can proceed with multiple developments in the other permits.”

At the same time the company announced the withdrawal from the Bernried geothermal project in the South of Germany. The company had completed technical and commercial due dilligence on the project of Bernried Erdwaerme AG. Phillip Hutchings, who was project manager of the Bernried project for the company is no longer with Hot Rock Ltd.

Source: ABC News, Australia, Company statement