Terra Energy eyeing Indonesian geothermal projects

US firm Terra Energy Resources, Ltd. announced Tuesday that it has entered into negotiations with Jala Tekno Geothermal (JTG), a subsidiary of Jakarta-based Pandawa Energy for possible areas of cooperation, including finance, for JTG?s proven geothermal resource located in Java.

JTG has successfully drilled a steam producing well that has been evaluated at over 6MW of steam in a field owned by JTG that has been indicated to hold geothermal resources in the range of 75MW to 150MW, the Company said.

Pandawa Energy is presently attempting to develop two proven geothermal resource areas on the island of Java and three areas on other Indonesian islands, collectively thought to hold about 1,000 MW of electricity, the Company added.

According to Terra, Pandawa has received letters of interest from a number of major American and European geothermal industry players for both upstream and downstream financing, operational and technical expertise on its geothermal projects. A governmental entity has also issued a letter of intent for development of the JTG?s phase one 55MW electric power generation project.(alex)