13 May 2005
Company Announcements Officer
Australian Stock Exchange
10th Floor
20 Bond Street
SYDNEY NSW 2000
Dear Sir
SALE OF GEOTHERMAL ENERGY INTERESTS
Perilya advises that it has sold to Green Rock Energy Limited (formerly Mokuti Mining Limited) its
50% interest in the geothermal energy project surrounding the Olympic Dam mine in South Australia.
As a result of the transaction, Perilya holds 7.5 million ordinary shares in Green Rock Energy Limited
(approximately 18.5% of the issued share capital of the Company) and 7.5 million A Class shares which
convert to fully paid ordinary shares on the drilling of the first exploratory well on the geothermal
energy leases.
Green Rock Energy Limited is a public company listed on the Australian Stock Exchange (ASX Code
GLK). A copy of Green Rock Energy Limited’s announcement is attached.
Yours faithfully
PERILYA LIMITED
JOHN TRAICOS
Company Secretary
PERILYA LIMITED
ABN 85 009 193 695 Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 PO Box 1787, West Perth, Western Australia 6872
Telephone: 61 8 9423 1700, Facsimile: 61 8 9423 1787, Email: [email protected], Website: www.perilya.com.au
Green Rock Energy
Limited
ABN 59 094 551 336
Level 1, 33 Ord Street
West Perth WA 6005
PO Box 637 West Perth WA 6872
Telephone: +61 8 9420 9300
Facsimile: +61 8 9481 2690
11 May 2005
Company Announcements Office
Australian Stock Exchange Limited
By e-Lodgement
COMPLETION OF GEOTHERMAL ENERGY ACQUISITION
AND DRILLING APPROVALS BEING EXPEDITED
Green Rock Energy Limited (formerly Mokuti Mining Limited) advises it has completed the
acquisition of all the issued capital of Green Rock Energy Pty Ltd and Perilya Geothermal
Energy Pty Ltd, which jointly own six Geothermal Energy Licences (GELs) over 2,700 km2
adjacent to the Olympic Dam mine in South Australia.
This acquisition also includes a new 498 km2 GEL that has been granted since shareholders
approved the acquisitions in March 2005.
BENEFITS OF THE DEAL
The geothermal licences adjacent to Olympic Dam have a number of distinct advantages
including:
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A large area of hot rocks is known to exist at depth below Olympic Dam;
Green Rock has access to an extensive database of information collected by WMC
over a 20 year period indicating that anomalous thermal conditions exist within the
licence areas;
Geoscience Australia and PIRSA have jointly shot two deep seismic lines that run
through the licences and which will assist the Company to locate the planned drill
holes;
Green Rock’s management has more than 60 years combined experience of the
geology at Olympic Dam;
The Olympic Dam mine provides the potential for a ready made local market;
A major transmission line runs through the licences en route to Olympic Dam,
creating the potential to supply the eastern states electricity grid; and
Well developed local infrastructure and services.
The Company will now proceed to implement its plans to recover geothermal energy from the
GELs and become a significant producer of clean, renewable energy. The first step will
involve drilling a series of core holes over the next three to four months to be followed in
2006 by the drilling of the first deep geothermal energy well.
DRILLING APPROVALS TO BE EXPEDITED
Green Rock Energy has awarded a contract to Boart Longyear to drill a number of cored holes
in the GELs down to 2 kilometres depth in granitic rocks known from drilling nearby to be
anomalously hot. The drilling will commence as soon as all approvals have been obtained
and the rig is made available. Further information will be provided as soon as a firm date for
commencement of the drilling is known.
The cored drill holes will better define the temperature, rock properties and geo-mechanical
rock stress regime at depth and the top of the geothermal energy anomaly identified from
previous drilling. The drilling data will assist the Company in selecting a location,
determined to have the optimum combination of hot temperatures, thermal gradients and rock
fracture properties, to drill the first deep geothermal energy well within the GELs.
Based on existing information, the Company expects the first geothermal energy well to be
drilled in 2006 to about 5 kilometres depth to tap the hotter temperatures required to generate
electricity commercially for supply to potential local, state and interstate markets.
MARKET ACCESS - STATE ELECTRICITY GRID RUNS THROUGH PROJECT
The GELs are located next to the Olympic Dam mine (SEE DIAGRAM), which is potentially
a local market for electricity generated from Green Rock’s Olympic Dam Project. Another
benefit includes a major 275 kV electricity transmission line passing through the GELs. This
power line, which connects Olympic Dam to the power grid linking the major cities of South
Eastern Australia, provides Green Rock Energy with the potential to supply electricity to
Australia’s major population centres.
CORPORATE
Following the completion of the acquisitions the board of the renamed Company includes Mr
Adrian Larking (Managing Director), Mr Alan Knights (Non-Executive Director), and Mr
Hugh Warner (Non-Executive Director) who continues as a director of the Company.
Mr Larking who is a geologist and lawyer has extensive oil and gas and minerals industry and
international experience. He and his exploration team have over 60 years combined
experience and knowledge of the geology in and around the Olympic Dam mine.
He has held various managerial positions in WMC’s Exploration and Petroleum Divisions
including Commercial Manager. In the 1990’s he was Executive Assistant to the General
Manager of Olympic Dam Operations and Manager Marketing Services for Olympic Dam
Marketing.
This experience combined with extensive heat flow studies undertaken in the 1990’s by
WMC and other scientific studies carried out in the area by Geoscience Australia and PIRSA
places Green Rock in strong position to fulfil its vision of becoming a major supplier of
energy derived from geothermal sources.
Adrian Larking
Managing Director
Olympic Dam Geothermal Project & Regional Power Grid
Olympic Dam
Leigh Creek
Tarcoola
Port Augusta
Berri
Port Lincoln
Powerlines (Voltage)
132KV
275KV
Power station
Mount Gambier
Provided by PIRSA (202526_002)
ADELAIDE