6 September 2011
The Federal Government has agreed to fast-track $1.2 million in grant monies to progress development of the Paralana geothermal energy project in South Australia.
The money will be spent to assist Petratherm – and joint venture partners Beach Energy and TRUenergy – accelerate preparatory work for the drilling of its second producer well, Paralana 3, which is expected to “close the loop” to enable commercial production of geothermal power to begin.
The $1.2 million is part of a $7 million Geothermal Drilling Program (GDP) grant awarded in 2009 to Petratherm, which has already received and spent $4.2 million of the GDP grant on drilling activities for its Paralana 2 well.
The fast-tracked instalment from the Government was originally planned to be allocated after the spud-in of Paralana 3 early next year, but has been brought forward to the delight of Petratherm Managing Director Terry Kallis.
“We applaud the Government for allocating this money earlier than anticipated. It’s a fantastic boost and enables us to build on the momentum we have generated at Paralana following our successful fracture stimulation works in July and subsequent testing,” he said.
“The funding will be used to help design our Paralana 3 well, obtain crucial equipment and secure a drilling slot with our rig provider.
“More importantly, it helps keep us firmly on track to produce Australia’s first commercial supply of geothermal energy by the end of next year.”
Mr Kallis said the latest funding injection will be received after a planned flow test at Paralana later this month and follows an additional $2.3 million in funds raised through a recent Placement and Share Purchase Plan currently underway.
MEDIA CONTACT:
Terry Kallis Petratherm Limited 08 8274 5000
Kieran Hall Hughes Public Relations 08 8412 4100
