Australian Beach Petroleum, geothermal & Paralana JV

Alexander Richter 8 Jun 2009

A news piece on Beach Petroleum describing the company's involvement in the Australian Paralana JV, developing a geothermal power project with PetraTherm and TRUenergy.

While this is already one week old, I thought it is still worth to be posted. In a recent statement on the take-over bid for Drillsearch Energy Limited, Australian Beach Petroleum Limited (ASX: BPT), the company talks about the aim to “diversify its energy mix, most notably through its participation in geothermal energy exploration.

“Beach now holds interests in more than 300 exploration and production tenements in Australia, Egypt, New Zealand, Papua New Guinea and Spain and continues to seek additional domestic and international opportunities”, all in the oil and gas market.

Beach Petroleum is about to start drilling at Paralana-2, a geothermal well in the Arrowie Basin at the end of the month. The Weatherford lightening rig which will be used to drill the well to a depth of 4000 meters arrived in Port Pirie this week and is being unloaded prior to transportation to the well location. (Beach Petroleum is earning up to 36% by contributing to the cost of the Paralana project of which drilling this well is a part).

The Paralana Project is a joint venture of Petratherm (ASX:PTR), Beach Petroleum and TRUenergy.

TRUenergy is a wholly owned subsidiary of the CLP group (China Light & Power). TRUenergy Geothermal farmed-into the Paralana Project in August 2008 and can earn up to 30% of the project for AU$57 million. (from a statement of Petratherm).

According to the company Beach Petroleum holds a 21% equity stake in this joint venture.