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 lifts on trifecta of good news at Penola Geothermal Project
Panax Geothermal (ASX: PAX) has reported a troika of good news from the Salamander-1 well in South Australia that is expected to enhance the potential of the Penola Geothermal Project:
- Geothermal temperature data;
- 3D seismic data; and
- Well transmissivity estimates
Bertus de Graaf, managing director of Panax said that "indications are that, subject to the well productivity tests planned for next month, the Salamander-1 well remains a candidate for producing clean base-load power for thousands of homes in the region."
"The new results not only boosted the geothermal potential of the Penola Trough, but it also lifts the potential of the other three troughs of Panax’s larger Limestone Coast Project."
In a statement the company said well clean-up flows are continuing and further data will become available from the well productivity test planned for next month.
Temperature data
The recently announced 15.4°C increase in the measured bottom hole temperature (BHT) of the Salamander-1 well, from 156°C to 171.4°C, has confirmed predictions of the regional 3D temperature data by Hot Dry Rocks Pty Ltd (HDRPL).
The 3D modelled temperature at 4,025m for the Salamander-1 well of 172°C is very close to the recently measured BHT at 4,000m of 171.4°C. Projected temperatures at 4,000m increase to the south and south-east into Panax’s GEL484, reaching 180°C within 4km of Salamander-1.
De Graaf said the new BHT of Salamander-1 combined with the new 3D temperature data is likely to increase the geothermal resources of GEL223.
He said it upgrades the overall regional potential of the Penola Geothermal Project, with higher temperatures alleviating the pressure on high production rates."
3D seismic data
The South Australian Government Department of Primary Industries and Resources recently released the Nangwarry 3D seismic survey data for public use. This combined with the vertical seismic profile data acquired at the end of drilling Salamander-1, allows calibration of the well results with the existing 3D seismic data.
Interpretation has shown that a high reflectivity zone, which is interpreted to be associated with reservoir rocks drilled in Salamander-1, extends 6.5km to the south east, covering an area of approximately 12.5km2.
This zone is interpreted as having similar reservoir properties to Salamander-1 and coincides with the higher temperatures of 175°C to >180°C at 4,025m as mentioned above. This zone also demonstrates the potential extent of the reservoir zones intersected in Salamander-1.
A review of the wireline logging data of the open hole section of the Salamander-1 well (from 2,900m to 4,025m) for estimating the reservoir quality of the target reservoir rocks (the Pretty Hill Sandstone) has been completed by Down Under Geosolutions (“DUGEO”) based in Perth.
Well transmissivity estimates
Panax have been advised that the combination of the “Lin-Log and MDT methods” are the most appropriate to estimate the “transmissivities” of the intersected target reservoir rocks.
The new temperature-, seismic- and transmissivity data have boosted the overall potential of the Penola Geothermal Project. The regional setting and potential have been greatly enhanced, with higher temperatures coinciding with areas where the reservoir rocks identified in Salamander-1 are interpreted to be present.
As the demonstration plant comprises a production and an injection well, this leaves the option of drilling a production well in the hotter area, and thereby converting Salamander-1 into an injection well. Overall, it is too early for such decisions, the company said, but the opportunity for this has now been created.
