ASX/Media Release
24 February 2010
Origin and Geodynamics establish shallows geothermal Joint Venture to explore for renewable energy solutions
Origin Energy Limited, Australia’s leading integrated energy company, and Geodynamics Limited have agreed to establish an additional joint venture to explore for shallow geothermal resources in the Eromanga Basin with a focus on developing renewable energy generation. The 50:50 Innamincka Shallows Joint Venture will be operated by Origin.
Origin, Managing Director, Mr Grant King said, “The shallows work complements our existing hot rocks project with Geodynamics in the deeps as the Joint Venture continues to explore the potential upside of the vast heat resources in the granite that is considered the most prospective resource of its kind in Australia.
“Exploring the shallows of the Innamincka tenements will allow us to investigate alternative ways of accessing heat resources.”
Today’s announcement also complements Origin’s 70 per cent interest in a large geothermal exploration tenement with Eden Energy Limited, which is geographically adjacent to the Origin/Geodynamics Innamincka tenements.
The Innamincka Shallows Joint Venture will focus on exploration in the permeable sandstone zones above the granite to depths of approximately 3km. Origin’s existing Innamincka Deeps Joint Venture with Geodynamics (operator), focuses on higher temperature Enhanced Geothermal Systems in the deeper granites to around 5km depths in the region.
The initial exploratory work for the Innamincka Shallows Joint Venture includes the drilling and testing of two slim wells to depths of approximately 2,200m during the next 12 months at a cost of approximately $10 million to assess the viability of geothermal energy production in the Shallows.
Origin will contribute $4.5 million of future project expenditure, in addition to its 50 per cent share of project expenditure for the Innamincka Shallows Joint Venture, in exchange for a 20 per cent increase in its interest in the Shallows area.
| Participants in the Innamincka “Shallows” Joint Venture are: | |
| Origin Energy Geothermal Pty Ltd* (Operator) | 50% |
| Geodynamics | 50% |
| Participants in the Innamincka “Deeps” Joint Venture are: | |
| Geodynamics (Operator) | 70% |
| Origin Energy Geothermal Pty Ltd* | 30% |
*A wholly owned subsidiary of Origin Energy Limited (ASX: ORG)
For further information please contact:
Media
Lina Melero
Ph: +61 2 8345 5217
Mobile: +61 427 017 798
Investors
Angus Guthrie
Ph: +61 2 8345 5558
Mobile: +61 417 864 255
About Origin Energy
Origin Energy is Australasia's leading integrated energy company focused on gas and oil exploration and production, power generation and energy retailing.
Listed in the ASX top 20 the company has approximately 4,000 employees, is a leading producer of gas in eastern Australia, is the largest owner and developer of gas-fired electricity generation in Australia and is a leading wholesaler and retailer of energy. The company services more than 3.5 million electricity, natural gas and LPG customers across Australia, New Zealand and the Pacific. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth in the ever changing energy industry. Through Australia Pacific LNG, its 50:50 incorporated joint venture with ConocoPhillips, Origin is developing Australia's largest CSG to LNG project based on Australia's largest CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
For more information go to www.originenergy.com.au
