The interpretation of previous data and appreciation of the geothermal significance of it has enabled HRL to accelerate its geothermal program within GEP-8 directly into a proof of concept testing stage.The area of interest known as the Koroit Project is located northwest of the town of Koroit, where geothermal temperatures in oil and gas wells are in excess of 130^oC at a depth of 2,800m. This region alone has power generation potential of some 200 MWe.

HRL's program for the Otway Basin geothermal development comprises:

• Completing interpretation of MT geophysical data to identify the best drilling location;
  
  
• Drilling and testing an  appraisal test well by end 2009;
  
  
• Subsequent power developments in the Koroit Project Area with plant sizes of up to 50 MWe each, up to a total development capacity which is presently estimated at about 200 MWe, provided that the temperature and flow rates proves to be as presently expected. This development program will be carried out over a time frame of 3 years, commencing in mid 2010; and
  
  
• Appraisal drilling, pilot and large power plant developments at other target areas within GEP's - 6, 7, 8, 9 and 23, following results from the work programs.

Figure 2 - Conceptual Model of Otway Basin Geothermal Development