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Market:	ASX
Sector:	Alternative Energy
EPIC:	PAX
Latest Price:	0.01 (0.00%)
52-week High:	0.06
52-week Low:	0.01
Market Cap:	6.24M

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Panax Geothermal

Panax Geothermal (ASX: PAX) is a pure geothermal company with access to some of the world's most promising geothermal assets. As climate change projections worsen, Panax Geothermal is well positioned to commercialise sustainable sources of base-load energy, powered from the Earth.

The long term vision of Panax is to become a major participant in the geothermal industry, both nationally and internationally. The scope of its geothermal interests will be broad, including both conventional geothermal resources (volcanic related) as well as enhanced geothermal systems (EGS) such as hot fractured rock (HFR) geothermal systems.

Panax Geothermal's Penola Project adds huge potential for geothermal energy

Friday, February 06, 2009

Panax Geothermal (ASX:PAX) has provided an update from Managing Director Bertus de Graaf on the previous quarter and outlook:

During the quarter, the Osiris Energy acquisition was successfully completed as a result of support from shareholders. As a consequence of this important transaction, the Limestone Coast Geothermal Project was strongly enhanced through the inclusion of the Penola Trough. This trough contains a hot sedimentary aquifer, previously intersected by a large number of deep petroleum exploration wells and has extensive 3D and 2D seismic survey cover.

As a result, the two vital economic inputs for geothermal development, namely: temperature and flow rate, can now be established with a high degree of certainty. The scope of the Penola Project is substantial as can be gauged from our recently released “Resource Statement”.

Panax Managing Director Bertus de Graaf said, "we will continue to be focussed on drilling a production well in mid-2009. This well is designed to become part of the first module of a geothermal power plant, scheduled to be on line (maingrid) in 2011. To realise this, Panax completed and submitted an application for a $7 million grant from the Commonwealth’s Geothermal Drilling Programme, whilst our efforts to raise additional funds on acceptable terms are ongoing."

"To achieve our chances to succeed, Panax will focus on raising the profile of the Penola Project. As such, Shareholders can look forward to a partial upgrade of the released “Inferred Resources” to the “Indicated” and/or “Measured” category. Also, we are planning to release an independently reviewed pre-feasibility study of the Penola Project, focussing on the total cost of power generated (capital and operating costs). Indications are that cost per MWe generated will be highly competitive with wind."

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