Overview

"With a broad portfolio of geothermal projects in Australia and Hungary, Green Rock Energy is well positioned to capitalise on the global drive to harness renewable energy."

Objective

The Company is focussing on geothermal energy projects located near infrastructure and markets which can be commercialised quickly.

These are commercial demonstration projects where we aim to recover geothermal energy from natural hot aquifers in the sedimentary rocks near population centres in the Perth Basin and Hungary. In both locations hot geothermal waters in sedimentary aquifers are known from existing petroleum wells and water bores. These natural geothermal reserviors should not need hydraulic fracture stimulation to achieve viable geothermal water flow rates although it may be an option in some circumstances to further enhance flow rates from these natural geothermal reservior rocks. We hope to have these projects in commercial production by 2012. The project locations are near existing growth markets, infrastructure and power transmission lines and will have a relatively short development time. With success both projects should be replicable which means access to much larger market growth opportunities.

By focussing on projects close to markets which can use conventional technology and at depths less than 4,000 metres in geological environments in the Perth Basin and Hungary where the geology is well known from existing wells, the Company expects to produce a cash flow quickly and at relatively lower cost than for deeper projects in remote wildcat exploration areas where geological and drilling risks are greater or unknown and key infrastructure is lacking.

The profitability of these commercial demonstration projects depends on recovering this geothermal energy from permeable aquifers at a sufficiently sustainable flow rate required for the intended uses. We are confident this can be achieved in both Perth and Hungary. Hot geothermal waters have been discovered by previous wells and water bores in the project areas where drilling wells has been proven to be relatively simple. In our Perth Urban Project area hot geothermal water is currently being produced at good flow rates from sandstone aquifers at depths around 750 metres deep and used to heat four aquatic centres including Challenge Stadium where the World Swimming Championshipos have been held twice. In Hungary over 5,000 wells have been drilled by our joint venture partner Hungarian Oil and Gas Company MOL, many of which intersected hot geothermal water reserviors with temperatures sufficient for electricity generation.