(MENAFN - ProactiveInvestors - Australia) Panax Geothermal (ASX: PAX) is part of a consortium of industry, government and research organisations that has been awarded a 1.25 million grant under the Federal Government's Emerging Renewables Program.
Panax is contributing its infrastructure, personnel and data to a research consortium that will provide clarity on how to improve drilling outcomes and the success rate of geothermal wells in Australia.
The two-year Reservoir Quality In Sedimentary Geothermal Resources study by the University of Adelaide's South Australian Centre for Geothermal Energy Research is actively supported by personnel from Panax, Geodynamics (ASX: GDY), CSIRO and the South Australian Government Department for Manufacturing, Innovation, Trade, Resources and Energy.
It is expected to cost more than A3.5 million though it has just been awarded a A1.25 million grant under the Federal Government's Emerging Renewables Program.
Panax is making available to the project all data, samples and testing results from its Salamander-1 hot sedimentary aquifer well, which had encountered complications during drilling and testing, access to the well, plus access to and use of Panax personnel.
The project will assess whether formation damage occurred as a result of drilling, devise remediation strategies for future geothermal wells in HSA settings, and help the industry understand rock-fluid interactions in hot water aquifers.
It is also expected to give Panax key insights into the drilling, completion and potential next steps in the Penola Trough and Salamander 1.
"Panax is building on its investment in deep drilling by making the well available to this project, and the results of the two-year research program will have deep implications for the viability of HSA reservoirs in Australia's sedimentary basins," managing director Kerry Parker said.
"By making our infrastructure, personnel and data available to this project, Panax will allow the best Australian technical minds in this field to turn their attention to our Limestone Coast Geothermal Project.
"We will be able to use the results and refine our strategies for progressing the project to the ultimate goal of commercialising this nationally significant, 'under the grid' energy resource in the heart-land of Australia."
Mr Parker said the project would provide Panax with a much clearer idea of how to improve drilling outcomes and the success rate of geothermal wells in Australia.
"The geothermal industry in Australia has come to realise that hot water reservoirs are likely to be different to hydrocarbon reservoirs, and it is this kind of issue that this project will address," he said.
"This project will meet our industry-based priorities such as maximising exploration and development success rates, but will also meet ARENA's strategic priorities such as facilitating national coordination, and gathering and disseminating knowledge."