THE BOURSE WHISPERER: Green Rock Energy (ASX: GRK) has announced the signing of a Memorandum of Understanding between its subsidiary company Mid West Geothermal Power (MWGP) and AWE Australia, a subsidiary of ASX-listed oil and gas exploration company AWE (ASX: AWE).
The MoU covers the intention of forming a joint venture to demonstrate the development potential of geothermal power generation in hot sedimentary aquifers in the north Perth Basin in the Mid West of Western Australia.
Source: Company announcement
“We are very excited to be working with AWE which brings to the project its long experience and excellent reputation in the Perth Basin,” Green Rock Energy executive chairman Richard Beresford said in the company’s announcement to the Australian Securities Exchange.
“AWE also has a strong desire to achieve a successful outcome from drilling the geothermal wells in 2013/14 leading to a new business opportunity in geothermal power generation in a fast growing market.
“We are confident that we now have in place all the ingredients critical for securing Commonwealth funding and then proving the very large geothermal potential1in the Mid West.
“AWE’s participation in drilling complements Pacific Hydro’s participation in power generation once commercial production of geothermal energy is demonstrated.”
MWGP is the 100 per cent-owner and operator of seven Geothermal Exploration Permits (GEP) in the north Perth Basin.
Since it was awarded the GEPs in 2009, MWGP has identified, what it considers to be, prospective geothermal resources.
According to Green Rock’s announcement the JV’s main focus will be to secure funding for the project from the Commonwealth’s Emerging Renewables Program (ERP).
Greenrock said the project could be a very strong contender for this funding as it considers it to have the advantages of a long history of exploration and drilling in the north Perth Basin and close proximity to power infrastructure and a growing energy market.