Panax Geothermal teaming up with oil & gas exploration firm

Alexander Richter 4 Mar 2009

Panax Geothermal (ASX:PAX) announced that it has teamed up with Adelaide Energy, a South-Australia oil and gas exploration company.  Both companies will share data and facilities over commonly explored areas in the Penola Region.

As continued in the announcement, “Panax holds geothermal exploration rights in the area, while Adelaide Energy is exploring for oil and gas in the same area.

The deal is a significant step for Panax, the company’s managing director Dr Bertus de Graaf said.
“The possible use of Adelaide Energy’s gas wells for re-injection purposes has the potential for significant savings for Panax in terms of both capital cost and time,” he said.

Similarly, data sharing and infrastructure sharing, including water storage facilities, is likely to bring in more benefits.

Last week, Panax announced enough energy in its project to power more than 500,000 homes with electricity.

The hot dry rocks project has 11,000 petajoules of measured resource, more than five times larger than those announced by Australian geothermal companies. (translating to around 1,000 MW installed generation capacity)

Panax is scheduled to start drilling its first production well, Salamander 1, about June this year.”

Source: Adelaide Now