The joint venture, in which Green Rock holds a 32% interest, will involve testing existing, but shut-in or out of use, petroleum wells for the generation of geothermal energy.
Hot water production rates will be tested at the first two wells in Zala County, southwest Hungary, over six-months to determine the optimum development size, which depends on the quantity and sustainability of the water flow rate.
If the flows do not meet expectations, the insurance policy will refund the major costs outlaid on testing of the wells.
Company secretary Nigel Hodder said the World Bank guarantee was an important component of the project’s progress, and Green Rock was now planning the subsequent stages of the development. He said the sites had already been prepared.
Managing director Adrian Larking and executive director Alan Knights are currently in Hungary attending a coordinative meeting of the JV partners.
The remaining partners in the JV are Hungarian oil and gas company MOL (operator with 36% interest) and Icelandic geothermal consulting and developing conglomerate Enex hf (32%).
