Petratherm drilling operations next week

www.news.com.au
June 17, 2009

Petratherm will next week start one of the largest drilling operations in the country at its flagship geothermal Paralana project near Flinders Ranges. The three-way joint venture project with partners Beach Petroleum and TRUEnergy Geothermal is now fully-funded until the proof of concept stage, Petratherm managing director Terry Kallis said.

''We are entering a most exciting stage of the company's development. The $7 million Federal grant, $1.5 million from options exercised and $7.3 million raised through an SPP offer and placement and the joint venture deal, has placed us in an excellent financial position,'' Mr Kallis said.

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. ''We will spud the first well (Paralana 2) on site next week,'' Mr Kallis said.

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.

Beach Petroleum will manage the drilling operations.