Shareholders Reject Director Removal as Earth’s Energy Faces Executive Transition

South Australian Geothermal Projects Take Shape

Earth’s Energy Limited (ASX: EE1) has delivered its quarterly update for the period ending 31 March 2025, highlighting significant technical progress on its flagship South Australian geothermal assets. The company’s Paralana and Flinders West projects, covering over 12,000 square kilometres, remain central to its strategy to develop green baseload power in Australia.

In September 2024, Earth’s Energy engaged global geothermal consultancy GLJ Ltd to conduct a Techno-Economic Feasibility Study (TEFS) focusing on the Paralana project. This study explored the viability of integrating advanced geothermal technologies, including Enhanced Geothermal Systems (EGS) and supercritical CO2 plants, which promise shallower drilling depths and potentially lower capital and operating costs. The TEFS examined two key zones at Paralana: Paralana Alpha, with existing permeability, and Paralana Omega, a non-permeable basement reservoir. The company is currently reviewing GLJ’s report and preliminary recommendations with its technical advisors.

Early-Stage Development in Queensland and Flinders West

While the Flinders West project is at an earlier stage, its proximity to major transmission infrastructure offers a strategic advantage for grid connection and potential commercial offtake agreements. Earth’s Energy is actively assessing the commercial development prospects of this site. In Queensland, the company holds one granted tenement near Brisbane and three under application, with a focus on leveraging geothermal power for data centres and industrial users in mining regions like the Bowen and Surat Basins.

Corporate Developments and Governance

On the corporate front, Earth’s Energy reported a cash balance of $3.6 million at quarter-end, reflecting disciplined expenditure with $146,000 allocated to exploration activities. Notably, CEO Josh Puckridge announced his departure effective 11 May 2025, marking a significant leadership transition. Additionally, a shareholder requisition to remove director Grant Davey was put to a vote at the company’s general meeting on 30 April 2025 but was decisively defeated, with 351.7 million votes against removal versus 242.6 million in favor.

The company also saw the release of approximately 73.8 million ordinary shares from voluntary escrow, increasing the pool of tradeable shares. Payments to related parties, including director fees and shared services agreements with Matador Capital Pty Ltd, amounted to $48,000 for the quarter.

Financial Discipline and Outlook

Expenditure remains aligned with the company’s prospectus projections, though exploration costs are currently subdued as projects have not yet reached drilling phases. Transaction costs were higher than anticipated due to extended capital raising efforts. With an estimated 10.4 quarters of funding available based on current cash and expenditure rates, Earth’s Energy appears well-positioned to continue advancing its geothermal projects and feasibility assessments.

As the company navigates leadership changes and shareholder dynamics, the market will be watching closely for further clarity on commercial development plans, potential offtake agreements, and the integration of cutting-edge geothermal technologies that could redefine Australia’s renewable energy landscape.