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Panax receives drilling grant

Posted on August 3, 2009, 4:04pm

Panax Geothermal Limited this week announced it has received the first two milestone payments relating to its Geothermal Drilling Program (“GDP”) grant from the Department of Resources, Energy and Tourism.

The grant was awarded in April 2009 to Panax for drilling Salamander-1 near Penola.

The payment this week was for $2.45m. An additional $1.75m is expected to be awarded before the spudding of the Salamander-1 well in late September or early October.

The Federal Government announced the $50m program in August last year to help begin making geothermal technology viable for baseload energy production.

Panax executive director Kerry Parker said the temperature and the quality of the target reservoir near Penola were both well known, a legacy of more than 20 deep petroleum exploration wells and substantial 2D and 3D seismic data coverage.

“The aim of drilling Salamander– 1 is to establish Australia’s first geothermal reserve,” he said.

“The Penola project has an excellent infrastructure location, being within sight of both the state and national grids as well as within approximately 5km of a major national grid connected substation.

“The Penola project has the potential to be the first grid connected, base load geothermal generation project in Australia.”

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