Origin Energy and Geodynamics established a joint venture in February to explore the Eromanga Basin’s shallow geothermal resources.
The 50:50 Innamincka Shallows joint venture will focus on developing renewable energy generation and will be operated by Origin.
“The Shallows work complements our existing hot rocks project with Geodynamics in the deeps as the joint venture continues to explore the potential upside of the vast heat resources in the granite that is considered the most prospective resource of its kind in Australia,” Origin managing director, Grant King said.
“Exploring the shallows of the Innamincka tenements will allow us to investigate alternative ways of accessing heat resources.”
The announcement complement’s Origin’s 70 per cent interest in a large geothermal exploration tenement with Eden Energy, which is geographically adjacent to the Origin/Geodynamics Innamincka tenements.
The Innamincka Shallows joint venture will focus on exploration in the permeable sandstone zones above the granite to depths of approximately three kilometres. Origin’s existing Innamincka Deeps joint venture with Geodynamics focuses on higher temperature enhanced geothermal systems in the deeper granites to around five kilometres depths in the region.
The initial exploratory work for the Innamincka Shallows joint venture includes the drilling and testing of two slim wells to depths of approximately 2200 m during the next 12 months at a cost of approximately $10 million to assess the viability of geothermal energy production in the Shallows.
Origin will contribute $4.5 million of future project expenditure, in addition to its 50 per cent share of project expenditure for the Innamincka Shallows joint venture, in exchange for a 20 per cent increase in its interest in the Shallows area.