From prospect to project'''

1
From prospect to project...

• How a potential geothermal project becomes
  reality The ENEX way
• Environmental/Development Session, GRC 2008
• Þórbjörg Sæmundsdóttir, Lilja Tryggvadóttir

2
Purpose

• Get overview
• Standardize structure
• Improve communication
• Help for decision makers

3
The development process
Initial Contact
Pre-feasibility Study
Feasibility Study
Business Plan
Financing
Execute Project
4
Milestones

• Secure Market
• Secure Concession
• Secure Land
• Secure Permits
• Confirm Resource

5
Initial Contact

• From where
• Congresses
• Homepage
• Word of mouth in the business
• International agencies
• ABC Classification system
• A Prospect promising
• B Information lacking
• C Uninteresting
• Tools
• Rules of thumb
• Enex database

6
Pre-feasibility Study

• Effort
• 8 to 100 hours
• Tools
• Gullveig A feasibility model developed at ENEX
• EES Plant optimization tool
• Internal database
• Product
• A short report with assumptions and results

7
Feasibility Study

• Effort
• 1000 of man hours
• Exploration cost
• Tools
• Gullveig A feasibility model developed at ENEX
• EES Plant optimization tool
• _at_Risk Monte Carlo simulation
• Internal database
• 4Projects

8
Feasibility Study
Project Environment
Economic Feasibility
Concept Design
Geological Research
9
Feasibility Study
10
Risk Assessment

• Zürich hazard analysis
• Sensitivity analysis
• Monte Carlo simulation

11
The Business Plan

• Should include chapters on
• Geosciences
• Design
• Finances
• Market
• Investment
• Risk
• Project Management Structure

12
Financing

• Board approval for suggested equity to project
• External investors
• Financing institutions (e.g banks)
• Public sector
• Structural funds

13
Project Execution

• Drill wells
• Test wells
• Build plant
• Begin operations

14

• Thank you for listening