25 November 2011
An Independent Resource Statement released today on Petratherm’s flagship Paralana project in South Australia has confirmed the project’s potential to provide enough geothermal energy to satisfy one third of South Australia’s power needs.
The Statement, produced by leading geothermal assessment firm Hot Dry Rocks Pty Ltd, has firmed the Paralana resource potential from “inferred” to either “indicated” or “measured” representing a major step forward for Petratherm and its Paralana joint venture partners Beach Energy and TRUenergy.
The results stem from Petratherm’s underground reservoir creation and flow testing activities conducted at Paralana in recent months, with the first measured resource alone capable of sustaining a 5.4MW geothermal power station for 30 years.
The total estimated recoverable resource has been confirmed to have the potential to produce 1,300MW of continuous geothermal power for the next three decades – which is more than one third of SA’s total energy requirements.
Petratherm Managing Director Terry Kallis said the project team is pleased with the independent test results, which validate the enormous geothermal energy resource at Paralana.
“These results are excellent for Petratherm and our joint venture partners Beach Energy and TRUenergy, and they’re also of major significance to the wider geothermal energy sector in Australia,” said Mr Kallis.
“It is estimated that we have enough geothermal resource potential for around 1,300MW of power generation for 30 years, which equates to more than one third of South Australia’s power use.
“To put this into context, the estimated amount of recoverable clean energy at Paralana is the equivalent to the electricity that can be produced at coal-fired power stations by burning 650 million tonnes of black coal and emitting 1.9 billion tonnes of carbon dioxide into the atmosphere over the same 30-year period.
“We’re obviously delighted with the findings, which are really just the tip of the iceberg and which easily accommodate our long-term ambition of generating 600MW of electricity into the national electricity market.
“The next step now is to drill the Paralana 3 well next year and complete the fluid circulation system, which will enable us to close the loop and begin unlocking the enormous commercial potential of Paralana’s vast resources.”
In a double celebration for Petratherm, its Spanish operations have been boosted by the Spanish Government announcing a strengthened commitment to geothermal development, particularly for electric power production.
“For the first time, Spain’s renewable energy development plan highlights geothermal energy as a separate renewable category, and importantly, allocates up to €100 million in subsidies and financing to facilitate the development of geothermal power production,” said Mr Kallis.
“Through the enormous amount of groundwork Petratherm has done in Spain in recent years, led by our Spanish Manager Raul Hidalgo, we’re in a terrific position to take advantage of the government incentives and are already in advanced discussions with potential partners.”
Mr Kallis said these latest developments at Paralana and in Spain provide a tremendous springboard into 2012, which is shaping as a defining year for Petratherm.
“Paralana is now closer than ever to producing Australia’s first commercial supply of geothermal energy, which is very exciting,” he said.
“Through our joint venture partners and government support via the new carbon tax and additional funding, we have been able to develop an ideal commercialisation path that we anticipate will lead to strong growth of the company, both in Australia and overseas.”
The full Independent Resource Statement by Hot Dry Rocks is available on request and will also be posted on the Petratherm website at www.petratherm.com.au.
Additional information is also available in Australian Securities Exchange releases issued by Petratherm today.
MEDIA CONTACT:
Terry Kallis Petratherm Limited 08 8274 5000
Kieran Hall Hughes Public Relations 08 8412 4100
