REG - Cindrigo Hldgs Ltd - Slatina 3 Geothermal Project Update

Cindrigo HoldingsAnnouncement

29/01/2024 07:00

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RNS Number : 1248B  Cindrigo Holdings Limited  29 January 2024

 

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January 29, 2024

 

 

Cindrigo Holdings Limited

('Cindrigo' or the 'Company')

 

Slatina 3 Geothermal Project Update

 

Cindrigo Holdings Ltd. (LSE:CINH) is pleased to provide an update on its
Slatina 3 geothermal project in Croatia ("Slatina" or "the Project").

 

Highlights

·     Completed first phase of drilling plan including all civil works
and well pad construction on site.

·     Company has given notice to mobilise the contracted drilling rig to
commence the drilling of the ca 4,000 metres deep level well during February,
to finalise the exploration phase of the project with the objective to move to
exploitation phase.

·     Received bridging finance of EUR 3.3 million from the Company's
largest shareholder Danir AB ("Danir") to secure the progress of the project.

 

 The initial preparation of its site on Slatina 3, Croatia, for drilling with
all civil works, infrastructure and well pad construction is now complete. The
works have been inspected by the drilling company, Crosco, who have confirmed
readiness of the requested mobilisation of the contracted drilling rig and the
start of deep level drilling on behalf of Cindrigo's Croatian 90% subsidiary,
EES Dravacel Energetika d.o.o. ("Dravacel").

 

Dravacel has given Crosco Notice to Mobilise drill rig on site, start of
drilling (Spud-in) is set for February 2024. The deep level drilling of the
GT-1 well at Slatina 3 will involve drilling ca 4,000 metres into a known
geothermal reservoir. Previous drilling into this reservoir recorded water
temperatures approaching 200C, exceeding the recognised thresholds for
geothermal power generation.

 

Notably, the work programme continues with the support of the Company's
largest shareholder, Danir AB ("Danir"), which has lent an additional EUR 3.3
million attracting interest at a rate of 10% per annum. In consideration of
the new loan finance Danir will also acquire a 45% indirect interest in the
Slatina 3 project.

 

Subject to approval by the Croatian Hydrocarbon Agency of the second permitted
extension to the Slatina 3 Licence, the second phase will include completing
the drilling programme and reviewing the well data to confirm all critical
determinants including geothermal flow rates with the objective to move from
exploration phase to exploitation phase.

 

The Project and the GT-1 well pad are located on a property owned by Dravacel
within the 55 km(2) (5,500 hectare) Slatina 3 Geothermal Licence.  Initial
design and layouts of the Dravacel property indicate sufficient footprint for
a 20 MW power plant and potentially several times that capacity.

 

 

 **ENDS**

 

 

 

For more information please contact:

 Cindrigo Holdings Limited                                                +44 (0) 7408 861 667

 Lars Guldstrand CEO

 Hannam & Partners (Financial Advisor & Corporate Broker) Samuel          +44 (0) 20 7907 8500
 Merlin, Sean Urquhart

 St Brides Partners Ltd (PR)

 Paul Dulieu, Isabel de Salis

                                                                          +44 (0) 20 7236 1177

 

 

 

Notes

 

Cindrigo Group is an active clean baseload power developer engaged in the
renewable energy sector. Its current focus is on advancing a geothermal power
plant located in Croatia towards production, where it plans to have contracts
in place for up to 200 MW of contracted capacity within a year, up to 450 MW
within three years and 1,000 MW by 2030.  The financing for each power plant
project will be primarily on a structured project finance basis within
individual special purpose vehicles. A number of other expansion projects are
also investigated, primarily in the Pannonian Basin and Central Europe or
select markets where Cindrigo has natural strategic partners.

 

Cindrigo is in the process of seeking approval by the FCA of a prospectus in
respect of its proposed application for re-admission to the standard segment
of the Official List and to trading on the Main Market of the London Stock
Exchange.

 

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