The Hobart-based company is offering up to 30 million shares at 25c each and plans to list on the Australian Securities Exchange on September 17.

KUTh was last year awarded a 12,360 square kilometre permit, SEL26-2005 in eastern Tasmania following research into prospective areas.

“Tasmania has an unusually high heat flow, with one of Australia’s highest recorded values – almost two-and-a-half times the norm – recorded from a granite in the project area,” chairman Dr John Bishop said.

“This, combined with other geophysical and geological data, suggests that there is an excellent probability that the required conditions for enhanced geothermal power (EGP) production will be met within KUTh Energy’s licence area.”

Bishop said the permit contained existing high voltage power lines, which would minimise the cost to connect a successful hot rocks project into the electricity grid, while the Basslink interconnector could provide access to the mainland energy markets.

KUTh is the preferred tenderer for two conventional geothermal exploration permits – EGP7 and EGP 9 – in northern Queensland.

The company is also evaluating opportunities overseas.

KUTh’s name is made up from chemical symbol for three radioactive elements – potassium (K), uranium (U) and thorium (Th) – that provide about 99% of the earth’s internal heat generation.