Cindrigo Holdings (LSE:CINH) shares climbed 18% on Tuesday, rising to 5.9p, after subsurface analysis and reservoir modelling by GeoDa Consulting increased the Eich exploitable energy estimate by 50%.
Cindrigo is a sustainable energy developer progressing three geothermal licences in Germany's Upper Rhine Valley through ZGG, with Eich the first licence to complete detailed subsurface assessment.
"It is our intention to start drilling in 2027," said Lars Guldstrand, Chief Executive Officer.
Initial Monte Carlo simulation estimates a mean resource across the three planned well doublets of 137.0 MWth heat and 20.8 MWe electricity, while modelling of the first production well, EichGT-1, indicates about 40.3 MWth, 5.3 MWe and 2,400 tpa LCE.
The development plan envisages three production well doublets with reinjection wells targeting the Rotliegend formation, and modelling places the EichGT-1 target at roughly 2,500-3,500 metres, a shallower depth than previously anticipated that the Company says may reduce drilling costs and execution risk.
Pre-development costs on the Eich licence have been approved as eligible for BEW Module 1 reimbursement and Cindrigo is progressing applications and negotiations for MunichRe drilling insurance, KfW financing up to €25 million and BEW Module 2 support.
A Competent Person's Report is expected later this year and drilling of EichGT-1 remains planned for 2027, subject to financing.
