Guernsey-based energy company Cindrigo announced on Tuesday (5 March) that its subsidiary Dravacel has applied for a further six month extension to the exploration licence at its Slatina 3 geothermal project in Croatia.
Should the extension be granted, the expiration of the licence will be extended to the end of October 2024.
The request to extend the Slatina 3 licence for a further six months aligns with the regulatory framework of the Croatian Hydrocarbon Council and is required to be able to finish the work to move to an exploitation phase, Cindrigo noted in a press release.
Cindrigo is confident that it has demonstrated that sufficient work has been done on the site to demonstrate its commitment and belief in the commercial viability of the project, and that the licence extension will be granted shortly, the company noted in the press release.
“We believe that the decision to pause site operations and the drawdown of TRAM’s funds until we receive confirmation of the licence extension represents a prudent approach to managing the project and its funding requirements,” said Lars Guldstrand, CEO of Cindrigo.
Tri Ri Asset Management and Cindrigo have agreed to postpone the drawdown of funds from TRAM for Slatina 3 development, under a 10 million British pound sterling (11.7 million euros) convertible loan with TRAM, until the licence extension is granted.
“We still have high confidence in the Slatina 3 project‘s potential which is underpinned by compelling geothermal data indicative of a high-quality reservoir. To date, nearly eight million euros has been invested in the project, with approximately 3 million euros allocated in 2024 alone, which illustrates our unwavering commitment to its success,” Mr Guldstrand added.
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Whilst it was previously anticipated that deep drilling would be initiated in February 2024, Dravacel has, to accommodate the timing of the license extension and draw down of funds, paused further drilling operations at the project site until the licence extension is confirmed.
The company believes that once the licence extension is granted and funds are drawn down and work recommences, it will have sufficient time and remain in a position to progress the project to the exploitation phase.
