I can’t see how challengers to a decade old debt default will impact EHR. The country went bankrupt, they offered a deal which was accepted by 93% of creditors, and people moved on. Countries, like companies, go bankrupt. I’ve invested in one such company, no-one including me, expected to get their investment back, it’s part of the risk. These guys are just sore losers.
‘If/When EHR gets the funding from CIFI how long would be considered reasonable for them to get a rig on the ground and drilling.’
I was wondering this myself. It depends on rig availability, and the size of the rig (is it for test or production drilling). EHR has not mentioned whether it has informal agreements for such long lead equipment. A previous capital raising was followed by a survey team on the ground within days, which could only have happened by that team being on standby. Maybe EHR has informal arrangements if CIFI looks do-able. Of course it is no point drilling without other long-lead equipment like casing, blowout preventers, etc. If everything was on standby two to four weeks to be on-site would be my layperson’s guess. A time-line like this and I’d be over the moon.
'Do we know what sort of target depth they are looking at, what diameter and casing will be used?'
Yes, we do. Looking at vertical depth about 1500m to 2000m (ie shallow); 9-5/8” production casing and 7” slotted liner. Preliminary design work is completed. See announcement: http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01315229
‘Does anyone have any geo knowledge of the area we will be drilling in?’
Yes. The Copahue geothermal field has been explored since 1974, Exploration includes geological, geochemical and gravity surveys, thermal gradient wells and four wells have been drilled to over 1000m. Data for static temperature, pressure and flow rates, and columnar sections exists for three wells to over 1000m. In short, the data is extensive and widely available.
‘I imagine it would take them a while to knock out 4 holes at say 3000m’ EHR is expected to need only three holes, to start with anyway. Drill time will vary with the size of the rig, the hole, the strata, luck, etc. As an extremely rough guide GDY drilled their ‘Shallow Aquifer’ well to 2360 in 16 days. That’s an exploration hole, ie narrow, and with a big rig.
‘And what sort of a window for drilling do we have with regards to weather?’
The snowy season lasts approximately from May to November (7 mths).
EHR Price at posting:
0.4¢ Sentiment: None Disclosure: Held
