Adelaide Advertiser
Tuesday 29/9/2009 Page: 34
Eden Energy's plans to develop its South Australian geothermal interests have been boosted after a deal with Origin Energy. Eden Energy, which has investments in emerging alternative energy technologies, has agreed to sell Origin Energy a 70% interest in its Geothermal Licence Number 185 (GEL 185) in SA's Cooper Basin. Under the deal Origin Energy will pay Eden $1 million in cash and bear the first $500,000 of expenditure on the licence, after which each party will contribute proportionately to future costs. Shares in Eden Energy surged after the announcement, and early yesterday afternoon were trading up 2.6c at 10.5c.
GEL 185 adjoins geothermal licences owned by GeoDynamics Ltd, which in 2007 entered an agreement whereby Origin Energy would invest in a 30% interest in the licences. Eden chairman Gregory Solomon said the investment by Origin Energy offered several benefits. "Apart from providing additional working capital to Eden, the farm-in by Origin Energy provides a significant boost to Eden's plans to develop its geothermal interests by enabling Eden to progress the development with a significant joint venture partner."
0 comments:
Post a Comment