Geodynamics flows steam from Innamincka Deeps

(MENAFN- ProactiveInvestors - Australia) Geodynamics (ASX: GDY) and partner have flowed steam as part of the Habanero 4 well clean-up program that is underway in preparation for flow testing and stimulation, which is part of Innamincka Deeps - located in the Cooper Basin of South Australia. The Habanero 4 well was first opened under controlled flowing conditions to commence clean-up activities at 9 am (ACST), Wednesday 17 October, with the first steam plume observed early Thursday morning, 18 October. The successful clean-up flow of Habanero 4 is an important step for the partners - and continues the safe and consistent implementation of the field program. Flow testing will commence in November and remain focussed on successfully commissioning the 1 MWe Pilot Plant early next year. The program focuses on higher temperature Enhanced Geothermal Systems greater than 3,500 metres in depth. Geothermal energy produced from hot fractured rocks, also known as Engineered or Enhanced Geothermal Systems), is generated by special high heat producing granites located 3 kilometres or more below the Earth's surface. The heat inside these granites is trapped by overlying rocks which act as an insulating blanket. The heat is extracted from these granites by pumping water through fractures in the granite and bringing the hot water to surface. The Innamincka Deeps joint venture Geodynamics has a 70% stake and is the operator, with Origin Energy (ASX: ORG) a 30% stake. Geodynamics intends to undertake the FY2013 capital work program activities on a sole risk basis. Under the terms of the Joint Venture Operating Agreement, Origin Energy will have the right to return to maintain its full 30% participation in the Joint Venture prior to the end of the financial year through a buy back provision, or alternatively, dilute its ongoing participating interest beyond FY2013. Geodynamics has sufficient funds to carry out the FY2013 capital work program at Habanero and will meet continuing commitments through its own financial resources as well as drawing down funding under the $90 million Renewable Energy Demonstration Program (REDP) grant as designated milestones are achieved.

ProactiveInvestors - Australia

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