Wednesday, 13 April
Renewed Confidence at Geodynamics
Geodynamics announced yesterday that the company is back on track with an updated work program for the next three years, including Jolokia 1 stimulation; commissioning of the new and heavier drill rig 200; drilling of the Habanero 4 and 5 doublets (which will power the 1-MWe power plant to be commissioned by early 2012); new Jolokia 2 well with the new rig; and the final decision on the commercial demonstration plant by early 2013.
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| The Jolokia 1 was drilled in 2008. Geodynamics is hoping to start the hydraulic stimulation and testing of a fracture zone in granite, as soon as the current flooding recedes and the roads re-open. Successful stimulation and testing of Jolokia-1 will demonstrate that favourable reservoir conditions experienced in he Habanero wells extend across the tenement area and will increase the "Measured Resources". This will also be the last task for the Drill Rig 100. Following the stimulation of Jolokia 1, the Rig 100 will be assigned to the Innamincka-Shallows work program. This is also a Geodynamics-Origin Energy joint venture operation, but with Origin Energy as the operating partner. |
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Following Jolokia 1 stimulation, the Innamincka Deeps JV will return to the Habanero site to drill two new wells: Habanero 4 and Habanero 5. The Habanero site is of course the start of the Cooper Basin project where Geodynamics proved the concept and demonstrated the flow through the fracture reservoir in 2008/2009. The 1-MW power plant infrastructure is locate at Habanero with power lines built to the nearby town of Innamincka. The Habanero site was not flooded.. |
The new rig, Rig 200 is currently under construction in Canada and will be delivered in October 2010. It is being built by National Oilwell Varco to the Geodynamics specs and, when delivered, it will be the heaviest drill rig in Australia. In December 2009, Geodynamics had announced that the Rig 200 was being constructed under a new standard resulting in a substantially heavier mast. One reported advantage is that Rig 200 will feature greater wind loading capacity, a requirement for the extreme desert conditions of central Australia. The two new wells (Habanero 4 and 5) to be drilled by this new rig will power the 1-MW plant. This puts the timing of the 1-MW power plant subject to the completion of the two new Habanero wells and this is scheduled to occur by early 2012.
As the reader will remember, the company was awarded $90m late last year through the Commonwealth's Renewable Energy Demonstration Program (REDP) to build a 25-MWe power station in Cooper Basin. The decision for the Commercial Demonstration Plant is expected to be made by early 2013 following 12 months of successful operation of the 1-MW power plant. The commissioning of the 1-MW power plant is therefore a very important milestone and the Gerry Grove-White, the Geodynamics CEO, says that they will investigate all avenues to accelerate the timeframe for commissioning the 1-MW power plant. The following is the forward work program at this stage:
Innamincka 'Deeps' and Innamincka 'Shallows'
Innamincka 'Deeps' is the original JV between Origin Energy and Geodynamics and its focus is on higher temperature Enhanced Geothermal Systems (EGS) in the basement rock (starting at approximately 3500 m depth). The participants in the JV are Geodynamics Limited at 70% and Origin Energy Geothermal P/L (a fully owned subsidiary of Origin Energy) at 30%. The operating partner is Geodynamics.
Innamincka 'Shallows' is the new JV established earlier this year and its focus is on exploration of shallow Hot Sedimentary Aquifers (HSA) above approximately 3500-m depth. The JV participants are Origin Energy Geothermal at 50% and Geodynamics Limited at 50%. The Origin Energy Geothermal is the operating partner in Innamincka 'Shallows' and will probably be pursuing HSA interests elsewhere in Australia.
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