Greenearth has been formed to make applications for the geothermal leases being offered by the Victorian Government and plans to assess the geothermal potential of the available leases over the next couple of months.

The new geothermal player said it expected to make several applications in October 2006.

The company is expected to have an initial capitalisation of $A750,000, with a third party cash investment of $250,000 and 250,000 shares in each of Lakes Oil and Victoria Petroleum.

Greenearth said it intends to release a prospectus in the first quarter of 2007 to develop any areas granted to the company.