About us

KUTh¹ Energy Limited has been formed to explore for sites in Tasmania suitable for Enhanced Geothermal Power (EGP) generation and the company is also looking in other states and overseas for geothermal resources.

Tasmania, in line with the rest of Australia, is forecast to need around 50% more power over the next quarter century. The state's hydroelectric power generation has little opportunity for expansion and is, on occasions, constrained by drought. Some wind farms have been installed but these are weather dependent and not without environmental problems. A study of Tasmanian geology indicates that the state is very well placed to provide EGP generation.

Why Enhanced Geothermal Power Generation?

EGP is the only option capable of providing additional sustainable, environmentally sound, base load supply. It emits no gases and has a very small footprint.

EGP is a relatively new concept whereby ambient temperature water is injected into high temperature granites at depth. Superheated water, returned to the surface via adjacent production wells, uses standard steam turbine technology to generate electricity (Figure 1). The spent fluids are used for re-injection.

Thus EGP will provide base load power from a closed system with zero emissions in an unobtrusive plant on a small footprint. Australia is at the forefront of EGP with a number of ASX listed companies actively working on the 'standard' concept or modifications of it.

Why Tasmania?

Tasmania contains several large granite masses which naturally generate high heat fluxes. Australia's highest heat flow measurements were made in Tasmania and thermal gradients approaching 60°C/km have been observed in sections of Permian sediments in eastern Tasmania. Based on these and other observations, there is a good probability that there are sites in Tasmania suitable for producing EGP.

Further, some of the potential sites are adjacent to existing power lines, Basslink and large-demand users in the north of the state.

Finally and by no means least, there is the possibility that a hitherto unexplained geophysical anomaly, termed the 'Tamar (electrical) Conductivity Zone' or TCZ may be due to a large volume of brine in a high permeability shear zone, meaning that some preconditions for EGP may be already present.

KUTh Exploration Pty Ltd

KUTh Exploration (a subsidiary of KUTh Energy) holds Special Exploration Licence 26/2005, granted to explore for a geothermal energy site in eastern Tasmania (Figure 3). SEL 26/2005 covers 12,360 sq km and is valid until 07/08/2011 and can be extended for a further 5 years after that. In 2007 KUTh applied for a further Special Exploration Licence in Tasmania designed to extend its holdings over further prospective ground.

The area chosen covers ground in the north and east of the state where granites have been interpreted to occur at depths suitable for geothermal power generation. In the central region, very high thermal gradients have been recorded in sediments with no known source, and the area was extended to the south to include the city of Hobart.

KUTh Exploration was registered by Tasmanian-based geophysicists Dr John Bishop and Dr Roger Lewis specifically to provide a vehicle for EGP generation. The General Manager is Malcolm Ward, a Tasmanian geologist with many years experience in geological exploration and resource investment banking and finance.

Based on the known geology and making a number of assumptions about the physical properties, five different scenarios have been postulated for eastern Tasmania of which 'B' with a potential sub 3 km depth is the most attractive (see Figure 4). The TCZ might be a subset of Case E.

The company has an active program to identify one or more high quality EGP sites within SEL 26/2005, with the aim of scheduling deep drilling in 2008.

Other EGP areas

A major strength of KUTh is its ability to target prospective EGP geothermal areas, using advanced models and concepts. KUTh has been named as the preferred tenderer for two geothermal permits totalling almost 1,200 km2 in Queensland (plus has nominated two other areas of interest in Queensland) and is examining numerous other prospects.

Non-power geothermal targets
KUTh is not ignoring the geothermal potential of other, shallower geothermal resources and intends to explore and exploit warm to hot waters for heating and drying applications in metropolitan areas.

Capital Structure and IPO

In early 2007, the company raised approximately $0.7 million in seed capital. This was followed by an IPO in August/September 2007 which raised $5.8 million and the company debuted on the ASX on 25 September under the ticker KEN. The company now has a total of 53,263,119 fully paid shares on issue and 333,333 30 cent options.

KUTh Energy Limited Board of Directors

Dr John Bishop, Chairman (m: 0418 373 429)
Stephen Bartrop
Paul Broad
George Miltenyi

Justin Clyne, Company Secretary (m: 0407 123 143)
Dr Roger Lewis, Principal Consultant

KUTh Exploration Pty Ltd directors

Dr John Bishop
Dr Roger Lewis

Principal addresses

35 Smith Street North Hobart, TAS 7000
PO Box 2001 North Hobart, TAS 7002
e: admin@kuthenergy.com
web: www.kuthenergy.com

¹ Pronounced kooth and derived from K, U and Th, the heat producing elements in hot granites. EGP promises to be a very couth form of energy.

Disclaimer

No warranty is made as to the completeness or reliability of the information contained herein. Any forward-looking information has been prepared on the basis of a number of assumptions which may prove to be incorrect. This information must not be relied upon as a recommendation or forecast by KUTh Energy.

Copyright © KUTh Energy 2007