PROGRESS _ LIMESTONE COAST PROJECT - SOUTH AUSTRALIA _ PROJECT SUMMARY

A brief summary of the project and the findings to date are set out below.

The key geological components of this new exploration model comprise:


Work carried out to date has confirmed that all components are present in buried sub-basins in the Limestone Coast area. High heat flow has been established through temperature measurements in 19 existing petroleum and 26 water wells.

The regional presence of a productive reservoir formation and the presence of a thick insulating layer inferred from detailed stratigraphic studies of petroleum wells in the nearby Penola Trough, the gas producing region to the north, as well as from reinterpretation of open file seismic data (1,460 line km’s), magnetic survey as well as gravity survey data.

A schematic diagramme illustrating the geological setting of the Limestone Coast project is shown below.
The high heat flow in the region is attributed to a combination of the geologically speaking recent volcanism (4,000 to 2,000,000 years ago), crustal thinning during the Otway Basin initiation and anomalous basement heat production. As a result of the studies carried out to date, three target areas have been delineated :


Detailed work has estimated that temperatures of 170oC or higher will occur at depths of 3,300m to 3,700m. Projected temperatures at 4,000m depth are estimated to range from 186oC to 200oC.
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On the basis of the work carried out as set out in the summary report, GeothermEx (a prominent US based geothermal consultancy group) has estimated the total generating potential*) of the above three troughs using three different approaches, with results ranging from 1,590 MWe to 1,627 MWe for a 30 year life. Results of work carried out in the period January 2006 to September 2007 may have some bearing on the above. Indications are that these will have no material effect on the overall economic potential of the project. Activities in the current quarter will focus on:

The preparation and submission of an application for the reinstatement of the $4 million REDI grant (in progress); A review of the work carried out by Scopenergy in the last 18 months (in progress); Defining locations for deep well tests and securing a rig for drilling a deep geothermal test well; and The search for a joint venture partner.

We have secured the consultancy services of Hot Dry Rocks (Dr Graeme Beardsmore and team) for specialist advice.
ALSO IN THIS SECTION
Limestone Coast Poster
Full Limestone Coast Project Report
Panax Geothermal Factsheet