Australia-based Greenearth Energy has received the Victoria Government's work programme suspensions for all three of its existing geothermal exploration permits, and an extension of permit terms.
The move to put off the projects was influenced by the lack of geothermal funding by the government. The project was also affected by the government's policy relating to a moratorium on 'fraccing' and well activity.
The company claims that the suspensions and extensions for GEP10, GEP12 and GEP13 will enable it to focus on more immediate term business interests without the burden of committing capital to geothermal work programs.
It also provides Greenearth with full flexibility to determine the best way forward with its geothermal interests in order to maximise shareholder value.
Completion of Greenearth's geothermal programs may require securing specific project funding and also the stimulation of its previously planned exploration well.
The work program suspensions are for the maximum time available under the relevant act, and currently end in May 2015, at which time Greenearth can re-apply for additional extensions as required.
Greenearth managing director Samuel Marks said that securing these suspensions provides the company with the opportunity to retain its geothermal areas of interest, with no commitment to further geothermal work or costs while these permit conditions are suspended.
Importantly, it now provides us with the ability to concentrate on developing our energy efficiency and NewCO2Fuels businesses," Marks said.
"We continue to achieve key milestones in the development of both of these businesses, and see further exciting opportunities ahead."