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Memorandum of Understanding
Subsequent to the end of the final quarter of 2008, a Memorandum of Understanding ("MOU") was signed between Panax, and GeoPark Limited relating to the exploration and potential feasibility and development of geothermal areas in Slovakia. Panax will have exclusive and direct access to the large and comprehensive data-base of historical information (comprising deep well data and seismic data) that is available from GeoPark.
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 considered to be prospective for geothermal exploration and potential geothermal feasibility and development, and that will ultimately be suitable for commercial development purposes.
Slovakia is characterized by a high supply/demand gap for electricity, with very attractive electricity tariffs in place to encourage the development of Slovakia’s geothermal generating potential.
Slovakia has an excellent power transmission grid in place, with the Slovakian Government encouraging geothermal development by providing tariffs of approximately A$385 per MWh.
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