The Penola Project is part of Panax’s Limestone Coast Project and is the largest of only three known Measured Geothermal Resources in Australia. An independent assessment has estimated the geothermal resource potential at 11,000 petajoules.

The Penola Project has an extensive database with 28 petroleum wells. The deepest petroleum exploration well is approximately 4,000 metres and intersects more than 1,000 metres of the target reservoir, the Pretty Hill Sandstone.

Panax’s Salamander-1 well, drilled in 2010 is the first deep geothermal well drilled in the Otway Basin. It was completed in record time and is the first to demonstrate conventional geothermal technology in Australia. First steam was produced and the well-testing programme was also completed on the project in 2010.

The Salamander-1 well met its primary objectives. At 4,000 metres projected geothermal temperatures were exceeded by more than 10oC and target reservoir rocks met the requirements for the development of a geothermal demonstration plant. An in-house pre-feasibility study found the project has the potential to generate power at $83 per megawatt hour, which is cheaper than wind power. Complications with the well were found during well-testing. Reservoir engineers have been engaged to examine the well and carry out remediation works.

Panax is pioneering conventional geothermal technology in Australia with its Salamander-1 well and is securing funding from the Australian Federal Government to progress the Penola Project.

Location Limestone Coast, South Australia
Equity 100%
Key features
  • Close to national transmission grid
  • Excellent infrastructure – high-voltage powerlines overhead and close to customers
  • Large tenement position
  • Target temperatures exceeded
  • More than 1000m of clean reservoir sandstones intersected
  • Salamander-1 well – the first deep geothermal well in the Otway Basin

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