Drilling for the Slatina 3 geothermal project in Croatia is set to begin by February 2024 as announced by Cindrigo and Croatia subsidiary Dravacel.
Cindrigo Holdings Ltd. (Cindrigo) has announced that preparatory work has been completed for geothermal drilling at the Slatina 3 site in Croatia. Drilling is set to begin by February 2024, targeting a known geothermal reservoir at 4000 meters depth where water temperatures approaching 200 °C are expected.
All civil works related to drilling, including the infrastructure and well pad construction have been completed. The drilling company, Crosco, has also confirmed the readiness of the contracted drilling rig for mobilization. The development of the Slatina 3 geothermal project will be under EES Dravacel Energetika d.o.o. (Dravacel), a 90% owned subsidiary of Cindrigo. The permit for the drilling location was secured in late 2022.
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 parameters 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 sq. km. (5,500 hectare) Slatina 3 Geothermal License. Initial design and layouts of the Dravacel property indicate sufficient footprint for a 20-MW power plant and potentially several times that capacity.
