Panax Geothermal quarterly update
Panax Geothermal (ASX:PAX) has provided an update from Managing Director Bertus de Graaf on the previous quarter and outlook focusing mainly on the acquisition of Osiris Energy and the enhancement of the Limestone Coast Geothermal Project.
As reported before the weekend, Panax Geothermal (ASX:PAX) has provided an update from Managing Director Bertus de Graaf on the previous quarter and outlook focusing mainly on the acquisition of Osiris Energy and the enhancement of the Limestone Coast Geothermal Project through the inclusion of Penola Trough, which “contains a hot sedimentary aquifer, previously intersected by a large number of deep petroleum exploration wells and has extensive 3D and 2D seismic survey cover.
As a result, the two vital economic inputs for geothermal development, namely: temperature and flow rate, can now be established with a high degree of certainty. The scope of the Penola Project is substantial as can be gauged from our recently released “Resource Statement”, so Panax Managing Director Bertus de Graaf. He continues that the company “will continue to be focussed on drilling a production well in mid-2009. This well is designed to become part of the first module of a geothermal power plant, scheduled to be on line (maingrid) in 2011. To realise this, Panax completed and submitted an application for a $7 million grant from the Commonwealth’s Geothermal Drilling Programme, whilst our efforts to raise additional funds on acceptable terms are ongoing.”
“To achieve our chances to succeed, Panax will focus on raising the profile of the Penola Project. As such, Shareholders can look forward to a partial upgrade of the released “Inferred Resources” to the “Indicated” and/or “Measured” category. Also, we are planning to release an independently reviewed pre-feasibility study of the Penola Project, focussing on the total cost of power generated (capital and operating costs). Indications are that cost per MWe generated will be highly competitive with wind.”