Company Information for Geodynamics Limited

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Company Statement

Energy is, and will remain, the largest business on Earth. This industry is undergoing major changes as the world grapples with climate change, pollution and the need for renewable energy. One source of renewable energy is hot fractured rock (HFR) geothermal energy.
Geodynamics Limited is the only listed public company in Australia whose sole focus is on developing hot fractured rock (HFR) geothermal energy.
HFR geothermal energy is produced using heat extracted from buried hot granites by circulating waters through an engineered, artificial reservoir or underground heat exchanger. These hot granites represent a massive source of renewable energy, free from CO2 emissions.
The development of HFR geothermal energy relies on existing technologies. HFR geothermal projects are currently underway in France, Switzerland, Germany, California, and Japan. Australia has a recognised potential for the development of HFR geothermal energy.
Geodynamics Limited has secured significant geothermal exploration rights in South Australia, New South Wales and Queensland and is investigating the potential in other states. The Company has a strong Board of Directors and successfully listed on the Australian Stock Exchange on 12 September 2002. Stage One of the Company's Business Plan is now nearing completion.
Geodynamics has access to US$500M of HFR R&D results generated internationally.
"There are compelling reasons for change. Ask anyone in the energy business if a change in the energy economy is necessary and they will say 'yes'".
In 2001 and 2002, Geodynamics secured two geothermal exploration licences in the Hunter Valley in New South Wales and two in the Cooper Basin in South Australia.
A site in one of its' South Australian licences 8km south of Innamincka was selected for development of Australia's first HFR (hot fractured rock) underground heat exchanger late in 2002.
Geodynamics has established close links with HFR experts in France, Germany, Japan, UK and the US. Through these links it has gained access to the results of hundreds of millions of dollars of research and development generated internationally.
Geodynamics has also worked closely with Australian research institutions such as CSIRO, Australian National University and University of Queensland, and with international oil and gas service companies such as Halliburton, Baker Atlas, Schlumberger and Avalon Sciences.

Company Diagram

3 Well HFR Geothermal Power Station. The hot granite needs an insulating blanket of sedimentary rocks at least 3km in thickness.

Operations and Technology

Geodynamics was awarded a $6.5 million R&D Start grant from Ausindustry for its Stage 1 program. The grant has been used for the "Proof of Concept" development of an underground heat exchanger in the Cooper Basin at a depth of 4,300m.
Stage One of the Company's Business Plan is now nearing completion. Habanero 1 well was spudded on 15 February 2003 and completed on 14 October 2003. It was drilled to a depth of 4,421 metres making it one of the deepest wells ever drilled onshore Australia. The well proved that temperatures in excess of 250oC were present at this depth and that fractures encountered in the granite rock were pressurized with water at more than 5,000 psi (34.5MPa) above the normal hydrostatic pressure at this depth.
The first Hydraulic Stimulation Program (enhancement of flow capacity of fracture pathways in granite near the bottom of Habanero 1) was completed on 23 December 2003 with a stimulated zone achieved four times larger than expected. The stimulation of flow paths were monitored by a sophisticated acoustic monitoring network installed in shallow wells located up to 5km from Habanero 1.
The Company spudded the production well, Habanero 2, on 9 July 2004 and completed the well to a depth of 4,350 metres on 28 December 2004. The completion of the well was delayed due to the loss of 800 feet of drill collar in hole and the requirement to drill a side track. At the completion of the well, the loss of a safety plug down hole produced high impedance conditions in the well during production.
Despite the problems of the safety plug, the Reservoir Testing Programme commenced in February 2005 and was undertaken through to October 2005 wherein flow tests established the presence of a large underground heat exchanger, better than that of any other HFR project in the world. A second underground reservoir above the first at around 4,150m depth, was also established as part of this programme. Additionally, significant enlargement of the original 2003 heat exchanger was achieved in September 2005.
The 2005 Reservoir Testing Programme produced the first geothermal steam flows in Australia. In May 2005 Habanero 2 flowed in excess of 20kg/sec at 210oC producing 15 megawatts thermal. However the poor connection to the reservoir attributed to the dropped safety plug progressively worsened and finally resulted in complete blockage to the main (bottom) reservoir.
In the first half of 2006 the Company attempted a second sidetrack to Habanero 2 to restore connection between Habanero 2 and the bottom zone reservoir. A drilling device, know as a snubbing unit, was used for this operation, and the drilling was performed with water rather than heavy drilling mud to avoid mud contamination of the fractures. Unfortunately, at a depth of 4,226m, just 100m short of the target the drill string became irretrievably stuck and the snubbing operation was abandoned.
The company is now preparing for a new well, Habanero 3, with a larger diameter in the granite (8 inch versus the 6 inch in Habanero 1 and 2), to complete its proof of concept. The larger size will mean that much more robust drilling equipment can be used.
Following the completion of Habanero 3, the Company aims to complete the balance of its Reservoir Testing Programme including tracer test and impendence measurements whereafter it will be in a position to assess the economic value of the known geothermal resource in the Cooper Basin.
The initial scale-up program, known as HotRock40, will consist of drilling 7 wells to 5,000m, and an eighth well to 6,000m plus construction of a 40 MW power station with connection to the National Grid. Following this commercial demonstration it is expected that many thousands of megawatts of generation capacity can be brought on line from the Cooper Basin tenements as demand requires.

Geographical Spread

HFR potential locations in Australia

Board of Directors and Key Management

Mr Gerry Grove-White	Managing Director
Mr Martin Albrecht	Chairman
Dr Doone Wyborn	Executive Director
Dr Prame Chopra	Non-Executive Director
Mr Robert Flew	Non-Executive Director
Mr Neil Galwey	Non-Executive Director
Mr Andrew Stock	Non-Executive Director
Dr Jack Hamilton	Non-Executive Director

Company Address Suite 6, Level 1 19 Lang Parade Milton, Queensland, Australia 4064 Telephone: + 61 7 3721 7500 Facsimile: + 61 7 3721 7599 Email: inf[at]geodynamics.com.au Website: http://www.geodynamics.com.au

Related News

09/06/08 - Geodynamics Hopes To Achieve Proof Of Concept For Its Geothermal Power This Summer
08/08/06 - Geodynamics Has Not Had A Smooth Ride To Turn Hot Rocks Into Power

Most Recent Statement

03/07/08 - Cooper Basin Project Update
11/09/07 - Notice of change of interests of substantial shareholder
10/09/07 - Hanabero 3 Drilling progress
09/09/07 - Change in substantial holding from ORG
09/09/07 - Change in substantial holding from ORG
04/09/07 - Appendix 3B - Issue and Allotment of 10,760,489 Shares