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PETRATHERM LIMITED ABN 17 106 806 884

Madrid District Heating Project Update Australian Geothermal Energy Conference

Petratherm’s Spanish Manager, Mr. Raul Hidalgo, will present later this morning an update on the Company’s Madrid District Heating project to delegates at the 2008 Australian Geothermal Energy Conference.

The key message from Mr. Hidalgo’s presentation is that the District Heating project is expected to demonstrate attractive returns and be capable of producing revenues as early as July 2010.

The attached presentation includes;

An overview of the 8 MW project and the broader 150 MW thermal resource.
A brief outline of current cost and key parameter estimates for the initial 8 MW thermal project that will service nearby customers.

21 August 2008

A summary of the recent existing well re-entry assessment that has confirmed that one of the two existing deep wells could be used as an injection well in an 8 MW doublet system.

ASX Code: PTR

Yours faithfully

ABN 17 106 806 884

105 Greenhill Road Unley 5061 South Australia Tel: +61 8 8274 5000 Fax: +61 8 8272 8141 W : www.petratherm.com.au E : [email protected]

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Terry Kallis Managing Director

MEDIA CONTACT:

Terry Kallis Petratherm Ltd 08 8274 5000 Kevin Skinner Field Public Relations 08 8234 9555 / 0414 822 631

Madrid Basin District Heating Potential

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MADRID BASIN DISTRICT HEATING POTENTIAL petra therm Raúl Hidalgo Pierre Ungemach August 2008

Madrid Basin District Heating Potential

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What’s a Geothermal District Heating Grid GDH District heating is a system which distributes heat from a centralised generation geothermal plant to end users; the heat is generated in the subsurface (Geothermal doublet) and is connected to end users via a heat distribution grid and substations located at surface.

Source BRGM

Madrid Basin District Heating Potential

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GDH Sketch

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----- Start of picture text -----

1. Production well
2. Production pump
3. Reinjection pump
4. Reinjection well
5. Heat exanger
Source www.semhach.fr
6. Back up boilers
7. Distribution grid
8. Subestation
9. Geothermal reservoir
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Madrid Basin District Heating Potential

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District heating in Europe

GDH represents 35% of the installed power dedicated to direct uses
Installed capacity
exceeds 5,000 MWt
Most important developments are located in Reykiavik (iceland), Paris basin (France) and Molasse basin (Germany)

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Source EGEC 2007

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Madrid Basin District Heating Potential

Spanish Heat knowledge

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Europe extrapolated temperatures at 5 km depth

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Madrid Basin District Heating Potential

Historical Geothermal Wells, Spain

Source www.igme.es

Madrid Basin District Heating Potential

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Madrid Geothermal Potential
• An oil well drilled by Shell 1980 intersected two zones with anomalous temperatures showing the geothermal potential of the basin.
A low temperature zone, 88ºC at 1.750 m associated to tertiary sandstones.
A medium temperature zone, 150ºC at 3.400 m associated to cretaceous sediments and to basement rocks contact.

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Madrid Basin District Heating Potential

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¿Where is the heat originating in Madrid?

Central System (CS) has thermally anomalous granites A conventional granite Wm[-3] . produces 2.65 µ

CS granites produces between 4.05-6.5 Wm[-3] . µ

Those values create anomalous heat flow densities; around 100 mWm-[2]

Another hypothesis is the SBT structure acting as a “heat

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