Geothermal hotspots in Indonesia.

Terra Energy announced it has issued 15 million new restricted shares for the purpose of collaterlizing a USD 5 million fund raising effort for financing further geothermal development in Indonesia. The company has entered into an agreement with Indonesian Jala Tekno Geothermal, part of Pandawa Energy, to further explore the opportunity found in an area where Jala Tekno already drilled a well with potential to produce about 6 MW of power. The area is estimated to be able to produce between 75 MW and 150 MW of geothermal power.

Terra Energy has been in negotiations with Jala Tekno Geothermal over this project in April this year, so this agreement represents a continuation of this process.

[source: Terra Energy]