Petratherm provides company update

In a recent company update to the South Australian Resources & Energy Investment Conference in Adelaide, also released to the Australian Stock Exchange, Petratherm provides details about the development of its projects.

Key points as laid down by the release:

• The Paralana Geothermal Energy Project is on schedule to spud-in the Paralana 2, 4 kilometre deep well in six weeks ­- mid June 2009.
• The Paralana Project has received further endorsement and recognition, with its success in gaining a AU$7M Geothermal Drilling Program (GDP) funding offer, with funds expected prior to the spud-in of Paralana 2.
• HEWI “Proof of Concept” for Paralana is planned to be achieved during first half of 2010 & first power in late 2010.
• Paralana JV has applied under the AU$435 M Renewable energy demonstration program (REDP) for one-third funding for a AU$200M, 30 MW demonstration project.
• Geo-Madrid 8 MW district heating project is in the advanced stages of its feasibility assessment – has attracted JV interest from large European energy utility Dalkia.
• Strong government support for renewable energy and the geothermal sector continues ­ with last week’s COAG plans to increase to the renewable energy certificate (post-tax) penalty from AU$40/MWh to AU$65/MWh and extending the period to 2030 ­ enabling greater certainty and improved NPV for geothermal project investment.

Source: Company Presentation/ Release via The Age