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Additional Information

Market:	ASX
Sector:	Alternative Energy
EPIC:	KEN
Latest Price:	0.03 (-14.71% )
52-week High:	0.07
52-week Low:	0.03
Market Cap:	3.16M

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KUTh Energy

KUTh Energy (ASX: KEN) is focused on geothermal energy in Australia, with the company's flagship project located in Tasmania.

KUTh wholly owns a Special Exploration Licence which extends 12,360 square kilometres across eastern Tasmania, which hosts the Lemont Enhanced Geothermal System (EGS) Play.

The company also has projects in Queensland and the South West Pacific region - including Vanuatu.

KUTh Energy in line for $7m Geothermal Drilling Program grant

Wednesday, August 26, 2009

KUTh Energy (ASX: KEN) has been focused on establishing proof of concept for the Tasmanian enhanced geothermal systems (EGS) project.

As part of the main Tasmanian tenement, KuTh defined an Inferred Geothermal Resource of 260,000 petajoules (PJ) at Charlton-Lemont, the first Inferred Geothermal Resource identified in Tasmania. The resource estimation was conducted by geothermal consultants Hot Dry Rocks Pty Ltd (HDRPL) and was conducted in accordance with the Australian Geothermal Reporting Code.

The Charlton-Lemont geothermal play is in proximity to transmission infrastructure and will be the focus of the company’s project application to the Australian Government’s Geothermal Drilling Program (GDP) in August, under which grants of up to $7 million are available for drilling deep geothermal wells.

KUTh's application, for the grant, has been accepted by the Department of Resources, Energy and Tourism. In its notification, the Department advised that the application was assessed as eligible and will undergo a full merit assessment over the coming months.

The GDP is intended to assist companies seeking to develop geothermal energy by supporting proof of concept projects.

The definition of Proof of Concept contained in the GDP application requires: drilling an initial well to the required depth to reach the desired temperature usually between three and five kilometres. Most projects will involve the drilling of a second well to intersect the reservoir near the first hole. Testing is undertaken to provide information on how much fluid can be circulated through the underground heat exchanger and at what temperature.

The company also has a REDI Grant from the Australian government which has an undrawn balance of $1,034,550. The REDI funds are earmarked for allocation against the Tamar Conductivity Zone project, as part of the Tasmanian EGS project exploration.

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