According to a recent statement, “Spud date for Panax Geothermal Limited’s (ASX: PAX) Salamander-1 well in the Penola Geothermal Project moved a step closer today on advice received from drilling contractor Weatherford Drilling International.

Bertus de Graaf managing director of Panax said the contract drilling rig Le Tourneau Lightning Rig # 828, is now estimated to be released from its current location on or about 7 November 2009.

After allowing for sufficient time to transport the rig from its current location, he said the company expects to be able to spud Salamander-1 well towards the end of November 2009 – some 70 days later than originally anticipated.

Panax investors welcomed the news, pushing the share price up 2.5%, to 20.5 cents.

The Salamander-1 well is a production well designed with the aim to convert part of the “Measured Geothermal Resource” of the Penola Project into Geothermal Reserves.

This would in turn form the basis for the development of a commercial, grid connected demonstration plant, representing a first for Australia.”

Source: Proactive Investors