Terra Energy in negotiations for project in Indonesia

Wayang Windu Unit II, Indonesia - picture not related to story (source: Aecom)

Alexander Richter 7 Apr 2010

Terra Energy Resources, Ltd. (OTC Bulletin Board: TRRE) announced today that it has entered into negotiations with Jala Tekno Geothermal (“Tekno”), a subsidiary of Pandawa Energy, a Renewable/Geothermal Energy Holding Company based in Jakarta, Indonesia, for possible areas of mutual cooperation, including finance, for the subsidiary company’s proven geothermal resource located in on the Indonesian island of Java.

Tekno has successfully drilled a steam producing well, currently capped, that, according to Tekno management has been evaluated at over 6MW (six mega-watts) of steam in a field owned by Tekno that has been indicated to hold geothermal resources in the range of 75MW to 150MW.

Pandawa Energy is presently attempting to develop two (2) proven geothermal resource areas on the island of Java and three (3) geothermal areas on other Indonesian islands, collectively thought to hold about 1,000 MW of electricity. Pandawa Energy has received letters of interest from a number of major American and European geothermal industry players for both upstream and downstream financing, operational and technical expertise on its geothermal projects. A governmental entity has also issued a letter of intent for development of the Tekno phase one 55MW electric power generation project.

Indonesia has the world’s largest and highest quality geothermal energy resources. Sitting on the Pacific Rim “Ring of Fire”, the islands in the Indonesia Archipelago are thought to possess geothermal resources of over 27,000 MW. Of these 27,000 MW, only about 4% or 1,100 MW are developed and in use.

The Indonesian Government announced in 2009, a National Electricity Development and Investment Program to establish an additional 10,000 MW capacity for implementation between 2009 and 2014 with 4,800 MW with 48% of this capacity to be generated from geothermal. To meet the estimated $12 billion in capital required for geothermal development under this plan, 70% of this capacity is expected to be developed by Independent Power Producers such as Pandawa Energy.

Catherine Balloqui, President of Terra Energy stated, “We are excited for the opportunity to work within the Geothermal field and look forward to the mutual expansion of our two companies.”

Source: company release via PR Newswire