Hot Rock said a minimum 200-station MT survey is planned over the Koroit Project area covering up to 250 square kilometres in Geothermal Exploration Permit GEP-8.
Koroit was selected from 17 targets for accelerated development following the successful MT trial in the project area last year, the company added.
A production appraisal test well is programmed for drilling after completion of the MT survey, which will be used to determine an optimal location for the production test well.
Hot Rock said the survey would take about eight weeks to complete and a further four weeks to interpret and report.
A second 50-station MT survey is planned to test a second major target in GEP-6.
"We are seeking hot wet geothermal resources that can be developed at lower cost than hot dry rock geothermal resources, as they contain in-site reservoir water, are naturally permeable and are exploitable at shallower drilling depths," managing director Mark Elliot said.
According to the company, previous oil and gas drilling in the Otway Basin to depths of up to 3500m had recorded temperatures as high as 143C.
