Reported from Australia, geothermal developer Green Rock Energy (ASX: GRK) “has signed mid cap oil and gas player AWE Limited (ASX: AWE) as a partner to explore the geothermal power generation potential of the north Perth Basin.
The joint venture will focus on securing funding from the Commonwealth Government’s Emerging Renewables Program by identifying and selecting a drilling target area that will be optimal for geothermal power generation.
It will also be an appropriate target for AWE to assess the hydrocarbon potential of formations that the well will intercept before reaching the natural fracture zones which are the target geothermal reservoir at an expected depth of between 3,000 metres and 3,500 metres.
AWE would become Operator of the drilling program, with geothermal well design, drilling and testing overseen by Green Rock.
If commercial production of geothermal energy is successfully demonstrated, AWE will have the right to continue its participation in the Project including the right to farm in to the remaining geothermal exploration permits on terms to be agreed.
Green Rock subsidiary Mid West Geothermal Power will also receive a total of 250,000 from AWE on completion of milestones up to and including the ERP funding being secured.
Since the permits were awarded in 2009, Green Rock has made considerable progress in identifying the most prospective geothermal resources including the use of 3D seismic.
It was also awarded a 5.4 million grant on a 1-for-3 basis from the State Government’s Low Emissions Energy Development fund towards the demonstration of commercial production of geothermal energy as the first stage of the Mid West Geothermal Power Project.”