Panax moves forward on Ngebel geothermal project
Friday, June 24 2011 - 02:20 AM WIB
During a recent site planning and reconnaissance visit in East Java, Panax explored the existing well sites, springs and fumaroles in the project area, and successfully identified neighboroughing additional hot springs in the general Ngebel project area.
The company also met with representatives from local government and surrounding villages who are keen for development activities to get underway and geothermal production to commence.
Panax is committed to building a strong geothermal business in Indonesia with the Ngebel Project being the company?s fourth project in the country.
Panax will develop the Ngebel Project in a joint venture with PT Bakrie Power, part of the Indonesian Stock Exchange listed PT Bakrie and Brothers Group. Bakrie Power was awarded the tender for the Ngebel Project in 2010 to develop three, 55 megawatt geothermal power plants, with potential to expand to more than 200 megawatts.
The Ngebel project has enormous potential. It is a near-term development project in a strategic location that is underpinned by a guaranteed, commercially attractive power tariff.
Exploration has already been undertaken in the project area, including temperature gradient wells, detailed geological mapping, geochemistry works for water and gas, thermal manifestation chemistry, heat flow modeling, heat flow mapping and geothermometry work.
Panax is earning a 35 per cent interest in the project through funding of required exploration works before commercial development commences. Both parties will contribute pro rata to development costs.
Panax will be project operator during the exploration and feasibility stages and will also fund the acquisition of extensive existing data and reports on the project. This will include surface development planning, geological studies, geophysical studies, magnetotelluric data and feasibility study. (romel)