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OLYMPIC DAM -
Our Objective To develop a 400 MWe power plant at Olympic Dam to provide 60 per cent of South Australia's 2020 renewable energy target. The Project The Olympic Dam Geothermal Energy Project is a wholly owned Green Rock Energy Limited project, located in central South Australia. Green Rock Energy holds 2,233 km2 of Geothermal Exploration Licences (GELs) over buried hot granites in the area surrounding BHP Billiton's Olympic Dam copper and uranium mine. An area of 650 km2 holds estimated inferred resources of 120,000 PJ of heat in place. In their report of the estimated inferred resources Sinclair Knight Merz (SKM) noted that less than 3% of this storred heat needs to be recovered to generate a constant 400MW of electricity over a 30 year project life. This project is situated on what the Company believes to be the most economically prospective hot dry rock, geothermal energy ground in Australia.

Location The Olympic Dam Geothermal Energy Project is an ideally located, commercially attractive, geothermal energy project, with access to major markets. Located within 10 kilometres of BHP Billiton's Olympic Operations, a large electricity user, and only five kilometres from an existing high voltage transmission line which is connected to the Eastern Australian power grid. ACTIVITIES Last year we reported Sinclair Knight Merz's (SKM) estimate of inferred geothermal resource of 120,000 PJ of heat contained in granites within an area of 460 sq kms which is about 15% of the total area of our geothermal licences at Olympic Dam. The geothermal resources are located on the door step of the world class Olympic Dam mine and next to a high voltage transmission line connected to the national power grid at a location where the project can be developed in stages as drilling progresses. In their report SKM noted that less than 3% of this storred heat needs be recovered to generate a constant 400 MW of electricity over a 30 year project life. The granite body hosting the inferred geothermal resources has been intersected at nearly 2 kilometers deep in the exploratory well Blanche No 1 in which a hydro-fracturing program has successfully shown that fractures can be opened in the hot granite. Green Rock Energy views this resource estimate as a partial estimate as work outside the 460 sq km shows there is potential to add substantially more geothermal energy resources. Subsequent modelling of surface heat flows from holes drilled into the granite body within the Company's licence areas to the east of the Olympic Dam mine but outside of the 460 sq km area showed similar elevated surface heat flows as found in Blanche No 1 drilled into granite on the west side of Olympic Dam. High heat flows ranging from 85mW/m² to 100mW/m² were determined from the new measurements. This has pointed to a more extensive heat potential in our permits than represented by the inferred geothermal resource within the 460 sq km but as yet no estimate of any geothermal resources has been made outside this 460 sq km area.

The next step to commercially exploit the energy from the inferred geothermal resource at Olympic Dam requires us to first prove the deliverability of the heat resources. We plan to do this by drilling an injection well and a production well into the hot reservior rocks and pumping water underground to recover the heat from the granites in the Blanche No 1 area near the western side of the Olympic Dam mine and processing plants. The Company has completed the bulk of the necessary field work it needs for this drilling. Before commencing the drilling we need to secure a joint venture partner to assist with funding this work.

RESOURCE REPORT The following resource estimates update and comply with the requirements for Reporting of Exploration Results, Geothermal Resources and Geothermal Reserves of the Australian Geothermal Reporting Code (2nd Edition 2010). This Code defines a Geothermal Resource as the estimated Recoverable Thermal Energy rather than Thermal Energy in Place (contained heat) reported previously under the 1st Edition of the Code. This should not be interpreted as downgrading the energy potential of any play but as a reasonable estimate of how much energy can be recovered from contained heat. Olympic Dam Geothermal Energy Project, South Australia (100% owned) Green Rock Energy holds 4 Geothermal Exploration Licence (GEL) areas at the Olympic Dam mining operation in South Australia, approximately 550km NNW of Adelaide. The area has an EGS (Enhanced Geothermal System) development potential to support a large Hot Dry Rock (HDR) geothermal electrical power generation project. Inferred resources have been estimated for a selected part (408 km2) of only one of these GELs (GEL 128) where one deep exploration well (Blanche No 1) has been drilled to nearly 2km depth and fracture stimulation carried out in Blanche No 1. The selected part of GEL 128 contains 408km2 of thermally anomalous Hiltaba Suite granite out of the total Olympic Dam Licence area of 2,240 km2 much of which also contains Hiltaba suite granite which are not included in these calculations.
"The Great Artesian Basin is one of the largest artesian groundwater basins in the World and has significant reserves of heated groundwater suitable for a variety of geothermal applications." Green Rock Energy has eleven exploration licences which occupy an area of approximately 5,038 km2 in the Great Artesian Basin (GAB). The GAB is one of the largest artesian groundwater basins in the world and underlies over 1.7 million sq kms, about one-fifth of Australian land area. The GAB contains artesian water held in permeable sandstone layers which are over 3,000 metres thick in the deeper parts of the Basin. Objective The Company aims to locate areas within its exploration licence with sufficiently high water temperatures and good natural water flow rates for emission free, renewable base load electricity generation. Water salinity in the main aquifers is good with dissolved salts ranging from 0.5 to 1.5 g/litre. The GAB aquifers can deliver flow rates of up to 6ML/day (ie more than 2 Olympic sized swimming pools) without the need for pumping. Activities to Date Analysis and evaluation of existing data is underway with a view to targeting exploration wells to prove the required temperature and flow rate needed for power generation.

Perth Basin "Green Rock Energy, in conjunction with UWA, is preparing for the development of Australia's first commercial geothermal powered heating and air-conditioning unit at one of three commercial buildings in the Perth Metropolitan area." Green Rock Energy holds 16 Geothermal Exploration Permits (GEPs) in Western Australia. In the North Perth Basin, the Company holds a 100% interest in nine GEPs (covering 2,637 sq kms). Of the four GEPs held in the Perth Metropolitan area (covering 685 sq kms) three are held 100% by Green Rock Energy and one is held jointly with the University of Western Australia but the Company holds 100% of the beneficial interests. In the Collie Basin Green Rock Energy holds three GEPs (covering 879 sq kms) jointly with BHP Billiton Worsley Alumina in varying percentages. In the North Perth Basin where temperatures are the highest, there is geothermal potential for electricity production to be fed into the nearby power grid. In the Central Perth Basin which includes the Perth Metropolitan area, the focus will be on direct heat uses including air-conditioning and desalination of water, which displace electricity as their energy source.

Location The Perth Basin is a 1,000 km long geological rift containing sediments up to 15 kms deep. Rifting ceased there in the Cretaceous age about 100 million years ago. It contains thick sequences of permeable aquifers containing hot geothermal water with sufficient temperature and water flow capacity at depths considered to be economic for electricity generation. The Perth Metropolitan Project Green Rock Energy, in conjunction with The University of Western Australia, is preparing for the development of Australia's first commercial geothermal powered heating and air-conditioning unit at one of three commercial buildings in the Perth Metropolitan area. The geothermal energy will be the direct heat source which will replace conventional air-conditioners and their associated large scale electrical and natural gas consumption. The Company is working towards the second half of 2010 with the commissioning of the commercial unit in 2011, making this the first commercial geothermal energy project operating in Australia outside the current small power plant at Innamincka. Hot Dry Rocks Pty Ltd, a leading Australian geothermal consulting company, estimated that GEP 1 , covering 143 sq kms , contains Inferred Geothermal Resources of 30,000 PJ of storred heat (equivalent to 950,000 MWth yrs) for the purpose of a district cooling project. This is more than sufficient to supply the energy requirements of many direct heat projects in the Perth Metropolitan area including district heating, water desalination and purification of waste water by distillation.

With success of the Perth Urban Project the Company intends to replicate the concept in and around the city of Perth and at the Alkimos development to supply air-conditioning and heating needs of the other major energy users. This includes hospitals, shopping centres, data centres, industrial estates and a high density residential development of 30,000 people planned at Stirling. The Company plans to assess the geothermal potential of its Alkimos Permit whichy the developer Delfin Lend Lease hopes to be carbon-neutral. In 2010 the WA Government granted Green Rock Energy $145,000 towards drilling two 500 metre deep exploratory holes in its Alkimos permit.This drilling will be used to confirm the heat flows and subsurface geology at the Alkimos development site. Activities Work carried out in relation to GEP 1 has included: evaluation of existing seismic drilling data; compilation of temperature measurements taken in the nearest petroleum wells and deep water bores; completion of gravity survey near the proposed well sites in the main University campus to confirm sub-surface geology; measurement of temperatures in a number of deep water bores and drilling of a 208 metre deep hole at the UWA campus in which the temperature profile was measured to confirm heat flow and estimate temperatures at depth and a vertical seismic profile was recorded to confirm the sub-surface geology.

In the northern Perth Basin the Company's six new Permits coincide with oil and gas producing areas, infrastructure and power lines. Our aim is to target hot water trapped underground rather than dry hot rocks.This region has been shown by an independent analysis commissioned by Western Australia's Department of Mines and Petroleum to have the Perth Basin's highest heat flows. This analysis, together with further heat flow studies commissioned by the Company using other data from our Permit areas, has further enhanced the Company's assessment of the geothermal energy prospectivity of the Permits. These surface heat flows determined from petroleum wells in the area have an average value of 95 mW/m and confirms the potential for sufficient temperatures in our Permit application areas at suitable depths for electricity generation. We will now direct our attentioin to locating areas where we can maximise the geothermal water flow rate from existing reserviors. Objective - Perth Urban Project Green Rock Energy is planning a 'proof of concept' project on the University of Western Australia (UWA) campus at Crawley 5 kms SW of the Perth CBD.

The project will consist of two wells to approx. 3,000 metres and system flow testing. If commercial flow rates and temperatures are achieved, Green Rock will install an absorbtion chiller to supply base load chilled water for the campus reticulated chilling system. Supply of hot water and electricity may also be considered. Agreements are in place with UWA, including the pricing of geothermal energy at the full cost of the displaced retail-priced electricity. Total project cost including purchase, installation and hook-up of the absorbtion chiller is budgeted at $20.8 million. Planning and approvals have commenced with the aim of commencing drilling in the first half of 2011. Green Rock Energy has been offered a $7.0 million grant for the project (on a $ for $ basis) from the Commonwealth Government. The Company considers that a succesful first well will give a very high level of confidence that the second well and system flow will be commercial. Using hot geothermal water to cool commercial buildings By replacing a Conventional Chiller that uses electric energy with an Absorption Chiller using geothermal energy, large commercial buildings, including universities, hospitals, hotels, airports, data centres and shopping centres, can be air-conditioned using hot geothermal water as the principal power source. Conventional Chiller versus Absorption Chiller The air-conditioning units of commercial buildings conventionally use an electrical driven compression chiller (or refrigerator) to produce chilled water which in turn is used to cool the air. An Absorption Chiller, using geothermal energy as the principal power source, is an environmentally friendly alternative to conventional compression chillers. A comparison of the two processes is shown graphically below.
A) Conventional Chiller High pressure vaporised, or gaseous, refrigerant flows to a Condenser where it is condensed to a liquid and the heat generated in the process rejected to the atmosphere. The liquid refrigerant then flows through an expansion valve and depressurises in the Evaporator where it evaporates by absorbing heat which provides the cooling effect. The low pressure vaporised, or gaseous refrigerant flows into an Compressor where electrical energy is used to compress the refrigerant. B) Absorption Chiller Vaporised, or gaseous, refrigerant flows to a Condenser where it is condensed to a liquid and the heat generated in the process rejected to the atmosphere. The liquid refrigerant then flows through an expansion valve and depressurises in the Evaporator where it evaporates by absorbing heat which provides the cooling effect. The low pressure vaporised, or gaseous refrigerant flows into an Absorber where it is absorbed by a liquid absorbent to form a combined liquid refrigerant/absorbent. The combined liquid refrigerant / absorbent is pumped to a higher operating pressure Generator where geothermal energy is used to separate the vaporised, or gaseous refrigerant from the absorbent. The vaporised refrigerant flows to a Condenser. Having separated from the refrigerant, the liquid absorbent flows back into the Absorber. The cooling process When a liquid evaporates, or boils into a gaseous state, it uses a significant amount of energy or heat. This energy, or heat, is extracted from the surrounding environment. Both forms of chillers, Conventional Compression Chillers and Absorption Chillers, evaporate a liquid refrigerant to produce chilled water which in turn is used to cool the air.

The difference between the two chillers is how they convert the refrigerant from the gaseous state back to a liquid. A Conventional Chiller converts the gaseous refrigerant back to a liquid by using a compressor to increase the pressure on the gas and then condenses the high pressure gas to a liquid using a heat exchanger, or condenser. The compressor is the main consumer of energy - in this case electrical energy. An Absorption Chiller absorbs the gaseous refrigerant into a liquid absorbent and the combined refrigerant and absorbent are pumped to a high operating pressure generator where thermal energy (hot water) separates the gaseous refrigerant from the absorbent which then condenses to a liquid using a similar heat exchanger, or condensor, as does a Conventional Chiller.

The generator is the main consumer of energy - in this case thermal energy. Energy usage A Conventional Chiller raises the pressure of a vaporised refrigerant whereas an Absorption Chiller raises the pressure of a liquid absorption/refrigerant solution, the latter requiring an order of magnitude less electric power. The Absorption Chiller uses an external thermal (geothermal) energy source to separate the pressurised and vaporised refrigerant from the absorbent. One geothermal production well, plus one injection well, could provide enough geothermal energy to air-condition a large commercial building.


Hungary (50% owned) "With existing power infrastructure, electricity pricing incentives and a strong growing demand for clean renewable energy, Hungary is a commercially attractive location for geothermal projects."

Our Objective To become the market leader in geothermal energy in Hungary through the exploration and development of geothermal power plants and the subsequent production and sale of geothermal sources of electricity into the Hungarian market.

In Hungary we are pursuing projects for electricity production and direct heating. The Joint Company Green Rock Energy, along with MOL Plc, are equal shareholders in the Hungarian geothermal energy company, Central European Geothermal Energy Private Company Limited (CEGE). MOL Plc. is a major European oil and gas company which holds the largest hydrocarbon leases in Hungary. CEGE consolidates the strong relationship between the two companies for the exploration and development of geothermal energy resources in Hungary. CEGE's mission is to become a market leader in geothermal energy in Hungary through the exploration and development of geothermal power plants and the subsequent production and sale of geothermal sourced electricity into the Hungarian market. Central European Geothermal Energy Private Company Limited 1117-H, BudapestInfopark D. ép.Gábor Dénes u. 2. T: (+36 1) 464 9558 The Location Hungary currently has direct heat projects but no electricity production from geothermal energy although the region in and around Hungary, the Carpathian Basin, has significant geothermal potential. The Carpathian Basin in Hungary is known from petroleum drilling carried out by MOL to have very favourable geology with abundant natural geothermal water with temperatures ranging between 120°C to 200°C. These high temperatures, at reasonable depths between 2.5 to 4 kilometres, are due to the abnormall thinness of the earth's crust compared to the World average. Hungary is a member of the European Union. The Hungarian Government has introduced policies to encourage the use of renewable energy. As part of the Kyoto Protocol, Hungary agreed to decrease its annual CO2 emissions by six per cent between 2008 and 2012 as compared to the reference period of 1985 to 1987, with a renewable energy sourced electricity target of 20 per cent of total electricity produced by 2020. Activities Some promising geothermal prospects in Hungary have been identified from the evaluation of MOL's extensive petroleum well data and seismic mapping. Detailed evaluation has been undertaken to determine the precise locations for drilling geothermal wells at these prospects, in conjunction with the processes for obtaining formal title to geothermal tenements.

Work continued on well selection for the first project for electricity production. A project area has been selected by CEGE to carry out flow testing of geothermal water intersected in an existing well. This project area was selected where power production could be achieved in the shortest time frame and at lowest cost using existing wells and technology. Success with this can lead to other existing wells in Hungary being brought into production followed by new larger wells to generate more electricity. On 3 August 2013 , on behalf of the Hungarian State, the Minister for National Development issued a public invitation to submit a bid for exploration, extraction and exploitation of geothermal energy over ceretain areas in Hungary. The Minister will adjudge any bids and conclude the concession contract in cooperation with the Hungarian Office for Mining and Geology in accordance with Hungary's Concessions Act and the Mining Act. Bids must be submitted by 15 November 2013. Bids that meet the required tender specification will be evaluated by an evaluation committee set up by the Minister. For the past three years through its 50% shareholding of the Hungarian company Central European Geothermal Energy Limited (CEGE) the Company has been investigating the geothermal energy potential within Hungary with a view to producing geothermal energy on a commercial scale from sedimentary aquifers for the purpose of generating electricity and providing direct heating. In anticipation of the commencement of this bidding process CEGE has completed substantial technical and commercial studies of the prospectivity of some of the areas which will be open for bids. As a result of this work CEGE is well advanced with the preparation of its submissiuon to enable it to participate in this bidding process.


Some of this is old news but check the Announcements pages for further updates here on their page
http://www.greenrock.com.au/icASXAnnouncements.php