INTERVIEW WITH TERRY KALLIS, MANAGING DIRECTOR OF PETRATHERM LIMITED (PTR)

“Paralana Project Update”

http://www.brr.com.au/event/50901

THURSDAY, SEPTEMBER 4, 2008, 11:30 AM

            BRR    Good morning and welcome to Boardroomradio. Today, we’re speaking with Mr. Terry Kallis, Managing Director of Petratherm Limited. Thanks for joining

10                    us today. Terry.

            PTR     My pleasure.

            BRR    Terry, we’re seeing a significant development for Petratherm with its Paralana Project. We see that you’ve been able to secure a drilling rig. What is the

15                    impact of this for Petratherm?

            PTR     Well, it’s a very exciting development for Petratherm and for its joint venture partners in Beach Petroleum and TRUenergy. What we’ve done is we’ve secured a 2,000 HP rig by a rig services contract with a company called Weatherford Drilling International and they’ll be bringing out a rig to Australia

20                    in January next year, and we’ll be looking to spud our Paralana, well, in February of next year. For our company, it’s an exciting development because it will be only the second company in the market to be drilling a deep well and moving forward with a real “proof of concept” in terms of our Hot Rock Project in Paralana. The other important aspect of this project is that it

25                    satisfies a key condition of the recent $57 million farm-in deal we did with TRUenergy so that major condition has been satisfied as part of securing the rig and that puts us in a very strong position to move forward both in terms of progress on the project but also the financial capacity that the company… to undertake the work.

30

                        We’re particularly pleased because now we’ve been able to secure a rig that we know is capable of drilling our well and indeed capable of assisting other people in the geothermal sector of drilling their deep wells. At a time when there’s a lot of demand for these sorts of rigs with the oil and gas market high

35                    demand there, we’ve been quite successful in being able to secure this, so it’s very important to the company.

            BRR    Terry, you talked about the timeframe of obviously when the drill will get out here, but you’ve also mentioned how it’s going to help you move through the

40                    “proof of concept stage,” I guess, what timeframe can we expect moving out after where it was spudded and how is this going to assist you?

            PTR     Sure. Well, I suppose, what we’re looking at is, as I’ve said spudding our well, the Paralana 2 well, for the first deep well in February next year and after a couple of months of drilling time, we expect that rig to be taken by other

45                    parties whether they’re geothermal companies or oil and gas companies, and then may be one or two or more parties looking to utilize the rig, we will then see the rig come back to us probably late in the year or early in 2010 to drill our Paralana 3 well. Now in between that time, what we’ll be doing is basically (inaudible) (00:03:08) stimulating and creating the underground reservoir and monitoring the creation of that reservoir. So basically in the periods, sort of May to the end of the year in 2009, we’ll be going through a process of developing the reservoir and that will help us target where the Paralana 3 deep well goes. At the end of that period once we’ve drilled the

5                      Paralana 3 well, we’ll go through a process of testing circulation and flow.  Conclusion of that will be when we conclude our “proof of concept.”

            BRR    Terry, certainly it does sound right, some promising news coming there with Petratherm being able to secure to that rig and hopefully move the project

10                    along swiftly. We thank you for your time today and look forward to speaking to you soon.

            PTR     Thank you.

            BRR    That was Mr. Terry Kallis, Managing Director of Petratherm Limited. If you

15                    have any questions about this broadcast or any other broadcast, please feel free to contact us on brr@brr.com.au. I’m Eddie (Inaudible) (00:04:04) and thank you for listening to Boardroomradio.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

DISCLAIMER: Transcripts made available by Boardroomradio.com is a free service whereby the transcripts are created by one or more third party contractors without any involvement or oversight by Boardroomradio.com or the respective company, firm, partnership or individual that is being transcribed.  Boardroomradio.com and its contractors, client companies, firms, partnerships and guest speakers (paid or otherwise) do not invite reliance upon, nor accept responsibility for, the information they provide. Boardroomradio.com makes every effort to provide a high quality service. However, neither Boardroomradio.com, its transcript providers, nor the providers of any other written or oral data made available on the Boardoomradio.com site (and its partner sites) give any guarantees, undertakings or warranties concerning the accuracy, completeness or up-to-date nature of the information provided. Users should confirm information from another source if it is of sufficient importance for them to do so. Boardroomradio.com, its directors and employees do not accept any liability for the results of any actions taken or not taken on the basis of information in this site, or for any negligent misstatements, errors or omissions.