Panax updates Indonesian geothermal project

The following is an excerpt from Australian firm Panax Geothermal quarterly report ending 30 March 2013 released on Tuesday.

Indonesian Geothermal Projects

The Company continues to monitor the status and continuing process of the execution of the Power Purchase Agreements (?PPA?) for our projects, and specifically for the Sokoria and Dairi Prima Geothermal Projects.

Documentation is still progressing through the execution stage within the relevant Indonesian Government departments. While this lengthy process is frustrating for the company and for shareholders, we remain confident of a positive outcome throughout this process.

Completion of the AMDAL Environmental Study for the Sokoria Project is close to finalisation, and final Indonesian Government sign off is expected during mid May 2013, following detailed meetings at site with Local and Federal Governments.

Other than our continuing focus on ensuring that the execution of the PPA?s occur in as timely a manner as is possible, and the completion of the Sokoria AMDAL study, all other in-country works have been put on hold until the execution of the PPA?s is achieved.

The Company has received some quite strong interest from two Asian Groups in relation to our portfolio of advanced geothermal development opportunities in Indonesia. Whilst initial contact has been quite informal, it has highlighted the significance of PPA Approval to continuing discussions, as project funding would need to be linked to confirmed revenue streams from these assets.

One of the two Asian groups has completed significant due diligence (both at a commercial and technical level and at an in-country level) on the portfolio of projects, at their own expense.

Negotiations are progressing towards a binding terms sheet agreement. (end of excerpt)