The structure of the Sokoria Agreement with Bakrie and EMI.imv...

The structure of the Sokoria Agreement with Bakrie and EMI.

imv this will be the first PPA to be signed off to Bakrie/Panax.

Australian geothermal firm Panax has acquired 45 per cent of the Sokoria Geothermal project in Flores, Indonesia following the execution of a share purchase agreement with PT Bakrie Power.

Sokoria is a near term geothermal development project, with the target reservoir at approximately 2,000m depth and a potential generation capacity of 100 MW.

Following the transaction Bakrie Power now owns 53 per cent of the project, Panax 45 per cent, and PT Energy Management Indonesia EMI two per cent.

Each of Panax and Bakrie Power have two voting directors on the Sokoria Project Board, whilst EMI has one non-voting director.

Panax is the operator of the project until the completion of a feasibility study and an associated development decision.

As part of the transaction, Panax committed to reimburse Bakrie Power 45 per cent of its expenditure on the project to date, or approximately $100,000, and by also committing to cover 100pc of the cost of a future feasibility study.

The advanced Sokoria Project has an extensive exploration data base, including three exploration wells as well as magneto-telluric (MT) surveys.

The island of Flores has a population of 1.5 million people who currently rely on intermittent diesel power generation.