Australian Green Rock Energy updates in half-year report

Alexander Richter 15 Mar 2009

Australian Green Rock Energy (ASX:GRK) gives an update on activities and financial results for the last 6 months until December 31, 2008 in this recent report to the Australian Stock Exchange.

Australian Green Rock Energy Ltd. (ASX:GRK) gives an update on activities and financial results for the last 6 months until December 31, 2008 in this recent report to the Australian Stock Exchange.

The company’s operational review, discusses the Olympic Dam project updating on the design of two deep evaluation wells and associated water circulation testing having commenced. “Drilling will require procurement of a suitable drill rig, and the finalisation of a farm-in joint venturer. Drilling of the wells
should commence in 2009.”

On other South Australian activities, Green Rock Energy informed that it was granted eleven Geothermal Exploration Licenses (GEL) in the Great Artesion Basin, with an area of around 5,308 square kilometres.

“The GAB is one of the largest artesian groundwater basins in the world and underlies about one-
fifth of the Australian land mass or over 1,711,000 square kilometres. The Company aims to locate areas with viable water temperatures and good natural water flow rates for emission free, renewable base load electricity generation.”

Green Rock is further evaluating hydrothermal systems in the Cooper Basin. “Patchawarra Geothermal Energy Project comprises three Exploration Licences covering 1,438 square kilometres of land over the Patchawarra Trough in the Cooper Basin, South Australia. Data evaluation and the modelling of sediment thickness and water flow potential was undertaken to locate geological formations in the Licence areas which are prospective for high flows of hot geothermal water and potentially suitable for generation of geothermal electricity.”

Regarding the Hungarian activities, Green Rock – as reported before here – has formed a new geothermal energy company with Hungarian MOL and Enex. In January 2009, Green Rock and MOL bought to equal stakes the shares of Enex and now hold 50 percent of the stake of Central European Geothermal Energy Private Company Limted (CEGE). The company is established to develop geothermal resources in Hungary.

In the Pert Basin, Green Rock is a preferred applicant for geothermal exploration permits in West Australia.

Further the company provides the following “going concern” on its financial situation. “The consolidated entity has incurred a net loss after tax for the half year ended 31 December 2008 of AU$1.18 million
(2007: $2.3 million) and experienced net cash outflows from operating activities of AU $818,214 (2007: $920,285). As at 31 December 2008 the consolidated entity had cash and cash equivalent balances of AU$1.73 million (30 June 2008: AU$2.86 million).

The directors recognise that the ability of the consolidated entity to continue as a going concern is dependent on the capacity of the consolidated entity to secure additional funding through either the issue of further shares, convertible notes, or a combination of both.

The directors believe that they will continue to be successful in securing additional funds through debt or equity issues as and when the need to raise working capital arises.

Should the Company and the consolidated entity be unable to continue as going concerns, they may be required to realise their assets and extinguish their liabilities other than in the normal course of business and at amounts different from those stated in the financial report.

Source: Company report via The Age