New World Energy will target both Hot Aquifer and Hot Rock resources. In particular it will focus on projects that are close to markets and have the potential to host both types of resource in the same location. This will reduce the risk profile of the projects by leveraging exploration and development costs, reducing land access issues and reducing capital costs by sharing power generation and transmission infrastructure.
Initial focus will be on Hot Aquifer projects, due to their short lead time to development and with potential to establish New World Energy as a major renewable energy producer. The lower capital and technical risk of Hot Aquifer projects (compared to Hot Rock resources) will assist in securing funding for project development.
In addition, Hot Rock project development will provide New World Energy with the potential to make major step changes in energy production over time and will secure the Company as a significant Australian energy producer. A proven track record in geothermal development and energy production, acquired from Hot Aquifer projects, will assist New World to acquire the funding and support for the development the Hot Rock resources.
Having acquired a very high-quality portfolio of projects, the most important next step in the development of the Company is the direct testing of the target reservoirs in the best project areas. The company is currently evaluating the potential to drill slim-holes to reduce the financial burden of drilling fully production-specified wells in the first instance. The company will also continue to assess existing geological data to add to its geothermal resource inventory and will undertake shallow exploration in areas with little previous exploration.