400mw powers 400000 houses half of sydney, page-23

Hello Shane,

I don't know why you would claim that "other Geothermal companies have no more idea about geothermal than trying to drill some holes into some hot granites". As you would be well aware, several are not even targeting granites, and one, Panax, has full data on the permeability and porosity of their sediment-hosted reservoirs, including target depth temperature and pressure measurements (gained from years of adjacent hydrocarbon drilling).

Flow rates are required for geothermall energy production, but they are of secondary importance to temperature. Flow rates can be readily manipulated through simple hydraulic stimulation - temperature improvements require additional depth (and with a mere 200C at 5500m, GRK will be praying they can facilitate one hell of a flow rate).

With regards to money in the bank, you cannot deny that this is a very important factor when considering an investment in GRK. To even get a peek at a decent drill GRK would have to bend over and give away something above 50% equity (hopefully structured as equity in the projet alone). As you do point out, GRK could have access to $5M in drilling expenditure funding, for a total of 2 wells and $10M, and this will be of significant help, keeping top20 holders, such as myself, from abandoning the company. If a JV deal can be struck where equity in the project is exchanged for rig funding, I'm sure we would all be pleased.

To call the O.D project 'average' borders on generous, considering the quality of other ASX listed geothermal projects, but, as you say, there are other projects with significant long term appeal. In my opinion, Hungary is commercially unattractive, but the Australian desal options should be *incredibly* successful and very profitable. The model for geothermal desalinisation as promising as they come.

The people involved with GRK couldn't be better at their game, and there will be many opporunities to secure new projects. For what it's worth, my position in GRK is to gain exposure to the top-quality advisors, the interesting Patch and U.C projects, and any further acquisitions the company may make.

I have not been too frustrated with the frac delay, being very confident that the rults will be favorable, as previously indicated by the Blanche1 drill core. What I'm waiting for now is a JV/Rig agreement to get this show on the road.

Cheers