PETRATHERM has announced it will start one of the largest drilling operations in the country next week at its flagship geothermal Paralana project near Flinders Ranges.
Petratherm managing director Terry Kallis said the three-way joint venture project with partners Beach Petroleum and TRUenergy Geothermal is now fully-funded until the proof of concept stage.
Kallis said the first well, Paralana 2, will be spudded next week, and it will take about two months to reach the target hot rocks located about four kilometres below the earth's surface.
The deep injection well, in tandem with a soon-to-be-drilled second well, is expected to establish an underground heat exchanger capable of circulating super-heated water during 2010.
Kallis said the $7 million Federal grant, $1.5 million from options exercised and $7.3 million raised through an SPP offer and placement, in addition to the joint venture deal has placed the company in an excellent financial position.
The company this week signed a Grant Funding Agreement with the Commonwealth Government Department of Resources, Energy and Tourism for its $7 million Geothermal Drilling Program.
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