Between April 2008 and April 2009, Petratherm Limited conducted a passive seismic monitoring study around the proposed site of Paralana 2, deep geothermal well, across tenements GEL 156, 178 and 254. Petratherm Limited being the holder of tenements GEL 156, 178 and 254. The tenements are located 35km northeast of Arkaroola, within the Arrowie Basin, South Australia, as shown in figure 1. A seismic array consisting of six borehole seismometers and four surface seismometers were deployed across GEL’s 156, 178 and 254 to circumvent the proposed well site of Paralana 2 as shown in figure 2. Four of the six borehole seismometers are deployed at depths ranging from 4-25m, while the final borehole stations are equipped in Paralana 1A and Paralana 1B and are operating at depths of 40m and 1790m respectively. The array has been operational since 9th April 2008, and is continuing to record data, however for the purpose of this report the last day of acquisition is taken as 23rd April 2009. Over its operational period the array has recorded 380 days of seismicity data on the natural background seismicity of the Paralana site, collected 120GB of data and observed 31 seismic events as summarized in table 1. The purpose of deploying the seismic array early and to such a wide extent was to enable the capture of data relating to the natural seismicity in the immediate area of Paralana 2 proposed well site. The spacing of the array was design to increase the successful detection of local seismicity with an aim of conducting shear wave analysis and focal mechanism solutions. The passive seismic study was awarded a PACE grant in February 2008 to study the efficacy of using shear-wave splitting as an exploration tool to target geothermal reservoirs. The details of the application are contained in Appendix 1. The following report and supporting documents supplied form the deliverables as outlined in the PACE Grant proposal.