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Green Rock Energy JV wins tender for concession in Hungary

Széchenyi Medicinal Bath in Budapest, Hungary (source: flickr/ Alex E. Proimos, creative commons)
Alexander Richter 12 Mar 2014

Central European Geothermal Energy Ltd, a joint venture between Australian Green Rock Energy and Hungary's state oil company MOL, has secured a geothermal concession in the area of Jászberény in East-Central Hungary.

Australian Green Rock Energy has – through its 46% owned subsidiary Central European Geothermal Energy (CEGE) – won the tender for three geothermal concessions in the area of Jászberény in east-central Hungary.

The concession area includes a well, which was successfully evaluated for its potential in the fall of 2010. CEGE is now preparing for negotiations with Government on terms and conditions, which should be completed by mid-April.

The Jászberény geothermal concession covers an area of 396 square kilometres and includes several areas previously drilled by joint venture partner MOL looking for petroleum.

It lies 80 kilometres east of Budapest and has high voltage electricity transmission and low voltage distribution lines running through the concession area for rapid commercialisation.

The concession is for a period of 35 years covering geothermal exploration and production from depths greater than 2500 metres; drilling to such depths is necessary to produce geothermal fluids hot enough for efficient generation of electricity.

Green Rock expects to raise equity in Europe to fund its share of the geothermal project company, a process which can now be pursued with renewed intent.

Capitalised at around $2 million, Green Rock is well placed to capitalise on recent improved ASX market sentiment towards clean energy companies.”

Source: Proactive Investors