Proactiveinvestors recommends

Toro Energy: Environmental approval recommended for Wiluna Uranium Project
Mutiny Gold: Is Deflector one of the best undeveloped orebodies in Australia?
Globe Metals & Mining’s Mark Sumich talks Chinese funding and the upcoming DFS at One2One Forum

Additional Information

Market:	ASX
Sector:	Alternative Energy
EPIC:	PAX
Latest Price:	0.01 (0.00%)
52-week High:	0.04
52-week Low:	0.01
Market Cap:	4.57M

1 year chart

1 day chart

Panax Geothermal

Panax Geothermal (ASX: PAX)has near term geothermal projects in Indonesia and is also pioneering conventional geothermal technology in Australia along with projects in India.

Panax Geothermal now owns two of three geothermal resources in Australia

Tuesday, July 07, 2009 by Proactive Investors

In a significant milestone for Panax Geothermal (ASX: PAX) investors, the company has increased its measured geothermal resource base to 22,000 Petajoules (PJ).

The reason? An independent asssessment has measured the geothermal resource at its Tirrawarra Project in GEL281 in the Cooper Basin in South Australia at 11,000 PJ.

Put it in perspective, approximately 150 PJ of the Tirrawarra Project’s resources would be sufficient to generate 20 Mega Watts (net) of electric power for 30 years.

Combine Tirrawarra's resources with the 11,000 PJ at the Penola Project in South Australia’s Otway Basin - and Panax currently owns two of Australia’s only three measured geothermal resources.

Clearly, this is significant in any analysis for a (geothermal) company under 18 months of existence.

Tirrawarra project is located in a relatively remote location, about 35km north of Moomba in South Australia’s Cooper Basin – Australia’s main on-shore gas and oil processing facility.

Panax CEO Bertus de Graf said, “most of the exploration risk normally associated with Inferred Geothermal Resources has been eliminated. Ownership of these two advanced geothermal opportunities puts Panax in a leading and unique position as a geothermal exploration and development company in Australia.”

Interestingly, Tirrawarra has a further 30,000 PJ indicated, combining to make a total of 41,000 PJ.

Investors may recall that both projects are based on Hot Sedimentary Aquifers (HSA), which use the energy stored in hot water contained in existing aquifers or reservoirs to generate power.

The development of HSA projects is considered faster because it targets hot water contained in existing reservoirs (aquifers). In contrast with Hot Fractured Rock (HFR) Geothermal Resources, HSA Geothermal Reserves can be established by drilling only one well, which can subsequently be utilized as a production well.

Once flow rates are established, HSA projects can be developed using commercial, off the shelf binary geothermal power plants.

It is planned that geothermal power from the Tirrawarra Project may replace costly diesel power generation which is widely used in the oil and gas production in the region.

Panax is applying to the Commonwealth’s Geothermal Drilling Program for a $7million grant for drilling a production well in the Tirrawarra Project.

Anticipation should begin to build with the first production well, Salamander 1, at the Penola Project in the Limestone Coast region of South Australia due to spud in September, 2009,

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.