PETRATHERM LIMITED ABN

Transcription

1 ASX Release g PETRATHERM LIMITED ABN Community consultation meetings Petratherm has recently visited the regions near the company s flagship Paralana geothermal energy project in the northern Flinders Ranges to meet with community members. The company has held meetings with key stakeholders to provide an update on the Paralana project s recent perforation and injectivity test and also to explain the upcoming main fracture stimulation stage of the project. (Planned for late March 2011) Refer attached presentation. The Community consultation was conducted by Petratherm s Managing Director, Terry Kallis and Exploration Manager, Peter Reid. A representative from the state government s Primary Industries and Resources department also attended the meetings. 10 March 2010 Yours faithfully ASX Code: PTR ABN Greenhill Road Unley SA 5061 T: F: W: E: admin@petratherm.com.au Terry Kallis Managing Director MEDIA CONTACTS: Terry Kallis Petratherm Ltd Kieran Hall Hughes Public Relations

2 Community Consultation : Paralana 2 Hydraulic Stimulation Program by Managing Director Terry Kallis, and Exploration Manager Peter Reid March 2011

3 Disclaimer and competent persons statement Disclaimer This presentation has been prepared by Petratherm Limited (Petratherm). The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Petratherm has no reason to believe that it is not accurate, reliable or complete, it may not have been independently audited or verified by Petratherm. Any forward-looking statements included in this document involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Petratherm. In particular, they speak only as of the date of this document, they assume the success of Petratherm s strategies and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document ( Recipients ) are cautioned not to place undue reliance on such forward-looking statements. Petratherm makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued. To the extent permitted by law, Petratherm and its officers, employees, related bodies corporate and agents ( Agents ) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Petratherm and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. All amounts in Australian dollars (AUD) unless stated otherwise. Competent Persons Statement The information in this report relating to geothermal exploration results and geothermal resources is based on information compiled by P.W. Reid, a full-time Petratherm employee. Mr Reid has sufficient experience in the style of geothermal play under consideration to qualify as a Competent Person under the Australian Code for Reporting of Exploration Results, Geothermal Resources and Geothermal Reserves (2008 edition). Mr Reid consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

4 Petratherm overview MADRID & BARCELONA Direct use heat, EGS & hydrothermal Our company Leading Australian geothermal exploration and development company TENERIFE & GRAN CANARIA Conventional volcanic CHINA Exclusive exploration agreement Projects spanning Australia, Spain and China PARALANA & EAST GIPPSLAND EGS & HSA Projects across the spectrum of geothermal technology Flagship project Paralana in SA s northern Flinders Ranges

5 Our board Board Skills and capabilities Derek Carter Chairman Simon O Loughlin Director Richard Hillis Director Financial Management Legal Marketing Project Management Corporate Governance Exploration and Development Geology and Geophysics Resources and Energy Government and Stakeholder relations Richard Bonython Director Lewis Owens Director Terry Kallis Managing Director

6 Development Model Heat Exchanger Within Insulator Higher Permeability Chemically Stable Lower Frac Challenge? Adelaidean bedding / joint surfaces = Cheaper Power!

7 Paralana Project Commercial Plan Small off grid market (5-30MWe) (Heathgate) followed by potential large on grid development (260 MWe+) Expenditure well leveraged for proof of concept, then potentially fully funded to initial commercial demonstration scale 30MWe plant Funding and expertise from JV Partners, Beach Energy (up to 36 per cent for $30m) and TRUenergy (up to 30 per cent for $57m) Strong Federal Government grant support - $7 million geothermal drilling fund and $62.8 million REDP grant

8 Paralana Project Regional Picture *Please note Competent Persons Statement near beginning of presentation

9 2D seismic interpretation suggests potential faults and fractures may be regionally extensive below a thick quartzite sequence (Seismic Line 84 SPG) *Please note Competent Persons Statement near beginning of presentation

10 Paralana 2 Well Summary Depth 4003m (G.L. AHD) Slow ROP due to hard formations Well cased and cemented to 3720m Measured Temp. = 176 o C at 3672 m; Extrapolated bottom hole temp. is 190 ± 2 o C at 4000m depth. *Please note Competent Persons Statement near beginning of presentation

11 Paralana 2 Below 3400m Section Brine Intersected High torque, intervals of high ROP s, drilling breaks and increased in well bore deviation. Evidence of geothermal brines from 3670m with inflows of over-pressured brine at approximately 3750m and 3864m. Shut in pressure indicated approx. 3,300 psi, of overpressure and mud system weighted up to 13.2ppg to stop flow. Well bore stability problems limited wire line logging while drilling measurements to 3725m. Numerous large Fractures/Faults Intersected! *Please note Competent Persons statement near beginning of presentation

12 Passive seismic array Monitoring began April 2008 one deep borehole sonde at 1790m in Paralana 1b six borehole sondes at 200m eight surface seismometers two accelerometers MEQ - Array Managed by IESE *Please note Competent Persons Statement near beginning of presentation

13 Regional and Local Seismic Events Results from April 2008 to Sept. 2010

14 Pre-stimulation Seismic Events April 2008-Sept.2010 Relatively small local events detected Largest event 0ML Correlates with faults within the Poontana Fracture Zone

15 Diagnostic Fracture Injection Test - Jan 2011 Successful break down (fracturing) of rock Over 140 micro-seismic events recorded Seismic events extend ~ 300m from the well bore Evidence of potential connection to an over-pressured zone

16 MEQ Real time monitoring during hydraulic Stimulation Mimo Software used to detect, locate, and determine event magnitudes in near real-time Main Stimulation Planned for late March/early April 2011

17 Regional community consultation May 2010 / March 2011 Petratherm /Beach and PIRSA Nepabunna Port Augusta, Leigh Creek, Hawker, Nepabunna, Iga Warta, Arkaroola and Quorn Update on project and outline of next work stage fracture stimulation First round consultation well received by community Mike Malavazos PIRSA Common questions Employment and economic development opportunities Access to, and use of water Questions and Answers posted on PTR website

18 Natural Seismicity Historical seismic activity at Paralana is low Frequent seismic events within the Flinders Ranges. Largest event recorded close to Paralana was a ML3.7 at Christmas Well in 1971 Natural seismicity recorded by Geoscience Australia and PIRSA

19 Fracture stimulation programme next stage of work Fracture stimulation Inject larger volume of water at higher rates Volumes and stepped injection rates dependent on micro-seismic response Aims to create and activate natural fracture network intersected in the well. Targeting MEQ activity >500m radius from the well Injectivity flow rates, and production testing if well allows Provision for a second stimulation interval dependent on results *Please note Competent Persons Statement near beginning of presentation

20 Outlook for 2011 and beyond Paralana JV project planned milestones 1 st Qtr 2011: Main fracture stimulation 2 nd half 2011: drilling of the Paralana 3 deep producer well 1 st half 2012: Circulation Test Demonstration of Flows 2012: Commission first stage 3.75 MW power plant

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