Panax updates Sokoria geothermal project activity

Panax Geothermal Limited (Panax) is pleased to announce that the company is one step closer to commencing drilling operations on its first geothermal project in Indonesia.

Required geochemical sampling works were successfully completed on the Sokoria Geothermal Project (?Sokoria Project?) last week.

Drilling operations are expected to commence after the findings of the testing have been analysed and a detailed conceptual reservoir model is finalized (already commenced) to confirm preferred sites of appraisal wells.

Project background
Panax will develop the Sokoria Project in a joint venture with PT Bakrie Power (Bakrie). Panax has a 45 per cent interest and is the operator of the project, which is located on Flores Island.

The Sokoria Project has a power purchase agreement of US$125 per megawatt hour for the first 30 megawatts of geothermal production.

Works undertaken
Panax has completed a detailed geochemical sampling program for the Sokoria Project which was carried out by Sinclair Knight Mertz New Zealand in conjunction with local Indonesian contractors.

The aim of the program was to finalise all required geoscience works prior to drilling operations.

The following geochemistry requirements were identified following a detailed review to ensure no information gaps existed:
? Gas and condensate samples were collected from fumaroles;
? Gas samples were collected from the existing exploration wells; and
? Water samples were collected from a number of hot springs and one of the crater lakes on Mount Kelimutu.

Gas samples are being analysed in Indonesia and water samples are being analysed in New Zealand.

Panax was assisted with the survey by personnel from Department of Mines and Energy, Ende Regency (Flores, Indonesia) and people from Sokoria, Roga and Toba villages. (ends)