31/10/2011 - 15:19

Green Rock, New World sign geothermal JV

31/10/2011 - 15:19

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Renewable energy players Green Rock Energy and New World Energy have signed a binding joint venture agreement to explore and develop the two companies’ geothermal exploration permits in the Mid West, a move the companies say puts them in the box seat to be the recipients of state and Commonwealth government assistance.

The companies announced today they would pool their resources to identify the most prospective drilling targets for two wells across their 17 collective exploration permits, to establish an initial 5 megawatts of power generation capacity.

Green Rock will be the initial operator of the joint venture.

New World Energy is the state’s largest geothermal energy exploration and development firm, holding permits across the Pilbara and Mid West, as well as across the Asian 'ring of fire'.

Last month New World announced its Philippines subsidiary, Geoenergy Inc, had acquired five high-potential geothermal projects in the Philippines.

Green Rock holds a 100 per cent interest in nine exploration permits in the North Perth Basin, while New World Energy holds eight exploration permits.

“Green Rock considers the Mid West Geothermal power project a strong contender for state and Commonwealth funding towards drilling the first two wells,” managing director Richard Beresford said.

“Working jointly with New World Energy further strengthens our prospects and we look forward to further progress on funding over the next few months.”

New World Energy managing director John Libby said the joint venture would have access to the best geothermal areas in WA, adjacent to existing infrastructure and markets.

“This collaboration will allow both companies to pool their technical and financial resources to ensure the most timely and cost-effective geothermal development,” Mr Libby said.

At close of trade today, Green Rock stocks shot up 16.6 per cent, to 1.4 cents.

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