The geothermal drilling program (GDP) Round 2 funding agreement was signed with the Department of Resources, Energy and Tourism (DRET).
The Proof of Concept program will test the potential of the geothermal reservoir to supply hot water to a geothermal power plant and this involves drilling two deep holes in the Koroit area to test water temperature and fluid flow rate from the geothermal reservoir.
Two potential drill sites have been selected, and the company has completed the well designs and is finalizing discussions with a drilling company to supply a rig to drill the wells in 2011.
Hot Rock executive chairman Mark Elliott said that receiving the GDP funding for the Koroit project is a milestone for Hot Rock in moving closer to generating electricity from geothermal energy in Australia within the next two years.
