another run, page-9

PT,

GDY will have to do more than complete the present sequence of tests before it can even apply for CEF funds. The 1 MW Pilot Plant is so small that it only demonstrates a working principle. A full scale working well pair would involve drilling HAB 5 and testing that for maximum operational flows with HAB 4. This would establish the critical MWe per well pair figure that could determine whether commercial arrays of wells are viable. (Multilevel fracture development might also be required to enhance that figure.) GDY still has a large part of its $90 M REDP grant yet unused.

CEF funds are generally intended for the purpose of helping companies to cross the Valley of Death for which normal loan funding is not available. GDY is not at the brink of commercial demonstration yet.

Juke