Progress at the Paralana EGS Project in South Australia

Abstract

The Paralana EGS Project, located 600km north of the city of Adelaide in South Australia, provides a natural laboratory for the development of an Engineered Geothermal System (Figure 1). Anomalously high heat production basement rocks provide the local heat source and are overlain by a thick sedimentary package, informally termed the Poontana Basin (Figure 2), within a favourable in situ stress regime. Early exploration drilling indicates an elevated geothermal gradient and heat flow at the project site. Petratherm Limited, in joint venture with a major oil and gas (Beach Petroleum) and power industry energy utility (TRUenergy), are initially seeking to build a 3.75 - 7.5 MWe commercial power development to supply a local mine. A local microseismic monitoring network has been deployed to record background seismicity prior to drilling of the first deep well into the resource, which commenced drilling on the 30th June 2009. An innovative strategy for development of the EGS reservoir is planned, involving massive hydraulic stimulation of multiple target zones within the sedimentary overburden. This paper will provide a technical update on progress at the Paralana EGS site.