News

Panax Geothermal reports 171 centigrades at Salamander-1 well at Penola

Panax Limestone Project location (source: Panax Geothermal, Limestone project booklet)
Alexander Richter 13 May 2010

Australian Panax Geothermal reports that steam produced at the Salamander-1 well at its South Australian Penola Project measured a bottom hole temperature of 171 centigrades.

Australian Panax Geothermal (ASX: PAX) reports that, “following the steam produced at the Salamander-1 well in South Australia in April, a bottom hole temperature of 171.4°C was recorded in the well at a depth of 4,000m.

The new temperature is significant as it is well above the projected temperature of 160°C and 15 degrees hotter than previously reported.

As importantly, increased geothermal temperatures in the target reservoir rocks “have a highly positive effect on the overall economics of the Penola Project.”

The new bottom hole temperature was measured earlier today, managing director Bertus de Graaf said, during well logging, conducted as part of the well clean-up flow operations.

De Graaf said it was too early to draw any specific conclusions from the result.”

Source: company release via Proactive Investors