"HRL will continue maintaining its interests in its geothermal exploration permits, GEP6 and GEP8, in the Otway Basin in Victoria, currently on a care and maintenance basis while the company continues to investigate the best way to try and develop the projects. However, the Commonwealth government has removed the Carbon Tax and is investigating reducing or removing the Renewable Energy Target (RET) in Australia which is about renewable energy reaching approximately 20% of electricity generation by 2020."
"The lack of action by the Commonwealth and State governments to support renewable energy prices in Australia (except PV Solar feed-in tariffs) will continue to reduce investor interest in funding these environmentally attractive renewable energy projects. In light of these events it became necessary for HRL to take action to survive, necessitating the need to consider acquisitions which are not subject to the same commercial risk as ongoing investment in geothermal
projects."
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