Panax Geothermal Ltd (“Panax”) has signed a Memorandum of Understanding for the exploration and potential feasibility and development of geothermal licences in Slovakia in central Europe.
Panax Managing Director Bertus de Graaf said under the terms of the MOU with Geopark Limited, Panax will have direct and exclusive access to a large and comprehensive data-base of historical exploration information.
“It comprises data from approximately 200 deep wells along with a significant amount of seismic data information that is exclusively available to Panax from GeoPark,” he said.
“The MOU forms the basis by which the parties will work co-operatively together to proceed to the selection of specific geothermal licence areas in Slovakia that are prospective for geothermal development.
“Slovakia is characterised by a high supply / demand gap for electricity along with very attractive electricity tariffs, in place to encourage the development of Slovakia’s geothermal generating potential.”
He said Slovakia has an excellent power transmission grid in place, while the Slovakian Government encourages geothermal development by providing tariffs of approximately A$385 per MWh.
“These tariffs are highly attractive, and this has led to considerable interest being displayed in regard to the potential for geothermal exploration and development in Slovakia, although no deep geothermal drilling has been completed.”
Meanwhile, an independent assessment of Panax’s Limestone Coast Geothermal Project in South Australia has declared a total Inferred Resource or stored heat of 111,000 petajoules (PJ).
Dr de Graaf said following last week’s announcement of an Inferred Resource of 41,000PJ for the Penola Trough in GEL 223, it had gained additional Inferred Resources in its Rivoli/St Clair and Rendelsham Troughs.
Dr de Graaf said the independent assessment of the areas by Hot Dry Rocks Pty Ltd (HDRPL) found the Rivoli/St Clair Troughs had an Inferred Resource of 53,000PJ and the Rendelsham Trough 17,000PJ.
“The Limestone Coast Geothermal Project has the potential to become a renewable energy project of national importance,” he said.
Panax is scheduled to start drilling its first production well, Salamander 1, in mid 2009. The completion of this well is expected to lead to the conversion of part of the geothermal resources to geothermal reserves.
Panax is a pure geothermal company with about $7 million in cash, and no debt. The company’s focus is on exploring existing reservoirs containing hot geothermal fluids, which have less risks than hot fractured rock geothermal projects and have a much shorter development time.
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