KUTh Energy trading halted pending capital raising announcement
KUTh Energy tenements in Australia and Vanuatu (source: KUTh Energy)
Alexander Richter
1 Aug 2011
Australian geothermal development company KUTh Energy (ASX: KEN) has been granted a trading halt by the ASX pending a capital raising announcement, with the company's shares placed in pre-open.
In a release by the company, and news from Australia it is reported that geothermal development company “KUTh Energy (ASX: KEN) has been granted a trading halt by the ASX pending a capital raising announcement, with the company’s shares placed in pre-open.
KUTh has not yet indicated where the potential capital injection will be allocated, but the company currently has a focus on geothermal energy, with the flagship project located in Tasmania.
The company wholly owns a Special Exploration Licence which extends 12,360 square kilometres across eastern Tasmania, which hosts the Lemont Enhanced Geothermal System (EGS) Play.
KUTh said basement geology in the Lemont area is believed to comprise ancient metasediment and intrusive granite. Overlying these rocks are younger flat-lying sediments which are widely intruded by thick sills of dolerite. What this means is that results from an extensive magnetotelluric geophysical survey work undertaken in the area in 2008-2010 have shown the presence of large electrically-conductive features in the crust beneath the resource area.
KUTh added that these features may point to the existence of a permeable, potentially fluid-bearing, fracture zone beneath Lemont. The resource play at Lemont is therefore a deep, hot, naturally-fractured rock system suitable for EGS development and potentially capable of supporting several hundred MW of base-load electrical power generation.”
Source: Proactive Investors
