Torrens Energy continues its progressive land acquisition strategy with the granting of GEL 559 at Mulgaria, Torrens Project Area, South Australia. The acquisition brings the Company's extensive landholding to 13,846km2 - the largest in South Australia. The new Mulgaria Project Area captures the northern extension of the geology hosting the Parachilna Geothermal Play, the Company's most advanced project containing Australia's largest code compliant geothermal resource of 780,000PJ. Drilling at Parachilna since 2007 has established the highest recorded heat flows and modelled temperatures on the grid in Australia, located proximal to the National Electricity Market (NEM). GEL 559 is situated within the highly prospective Torrens Hinge Zone (THZ) the GEL covers a section of thermally anomalous basement geology, interpreted as being overlain by a thick sequence of insulating sediments, effectively de-risking this highly prospective geothermal prospect. Torrens Energy has also implemented recent changes to the Petroleum and Geothermal Energy Act 2000, allowing the consolidation of its existing GELs providing a substantial cost and administrative saving. The newly acquired Mulgaria Project Area expands Torrens Energy's landholding in South Australia to 13,846 square kilometres, representing the largest geothermal licence holding in the state. Mulgaria is located 230 kilometres north of Port Augusta within a geological domain known as the Torrens Hinge Zone (THZ), a highly prospective geothermal terrain known for high heat flows coinciding with insulating sedimentary cover. Mulgaria lies approximately 70 kilometres northwest of the Parachilna Geothermal Play containing Australia's largest Inferred Geothermal Resource estimated at 780,000PJ and where modelled temperatures of ~220C at 4,100m have been independently validated by exploration drilling. Geology GEL 559 covers a 500 kilometre square section of the thermally anomalous South Australian Heat Flow Anomaly (SAHFA) a corridor of known heat producing basement geology. The interpretation of the Nilpena seismic line [south] has confirmed the continuation of target basement rocks overlain by thick sub-horizontal insulating Tertiary, Cambrian and Pre-Cambrian sediments, forming an effective insulator over the geothermal prospect, effectively de-risking this highly prospective geothermal ground. Recent changes in the Petroleum and Geothermal Energy Act 2000 include an increase in the maximum allowed size of a Geothermal Exploration Licence (GEL). Licences that comprise equivalent work programs have been allowed to be merged, allowing the Company to consolidate 26 of its existing South Australian GELs to 10. In this way Torrens Energy has been able to decrease its annual reporting and administrative obligations as well as benefit by way of considerable cost savings due to decreased annual fees payable per GEL.
E.
TEY Price at posting:
8.8¢ Sentiment: Buy Disclosure: Held
