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TRUenergy Shows Confidence in Hot Rocks

News Release

www.ministers.sa.gov.au

The South Australian Goverment Logo

Hon Paul Holloway

Minister for Police
Minister for Mineral Resources Development
Minister for Urban Development and Planning

TRUENERGY SHOWS CONFIDENCE IN HOT ROCKS

Monday 4 August 2008

Minister for Mineral Resources Development Paul Holloway said TRUenergy’s announcement today of a $57 million farm-in agreement with the Paralana Geothermal Energy joint venture project is a tremendous vote of confidence in South Australia’s hot-rock energy industry.

The farm-in arrangement enables TRUenergy to share up to 30% of earnings from the Paralana Project geothermal energy joint venture project developed by South Australian-based company, Petratherm, and its partner Beach Petroleum.

“South Australia is in the box seat to be a world leader in geothermal generation, technical skills, proven project development, and long-term commercial success and the TRUenergy farm-in arrangement strengthens this position” Mr Holloway says.

“TRUenergy’s decision to farm-in is a tremendous show of confidence in Australia’s innovative, emerging geothermal energy industry and the potential of the hot rocks with which South Australia is richly endowed.

“As Australia’s third largest energy retailer, the company brings a wealth of experience in energy industry capabilities including generation plant, transmission lines and sale of power to business and residential customers.

“This experience complements the specialist subsurface expertise of Beach Petroleum and geological expertise of Petratherm.”

Twenty-three companies have so far applied for 237 Geothermal Exploration Licences (GEL) areas in South Australia covering more than 110,844 square kilometres.

This level of exploration compares with 85 licences applications for the rest of Australia, with South Australia boasting 74% of all geothermal exploration licences in this country.

These exploratory licenses might not all translate into energy generation projects. However, the five-year work programs associated with the 237 South Australian GELs represents more than $701 million in investment for the period 2002-2013 or 82% of all geothermal investment in Australia.