asx announcement 14 january 2009

Any expert opinions on these developments?

Savina 1 Drilling Progress
Geodynamics is pleased to announce the intersection of a flowing fracture in the top of the granite at Savina 1 at 3,700m, approximately 85m below the top of the granite. Whilst the presence of productive fractures at this level near the top of the granite was anticipated, this fracture is interpreted to be highly productive and more over-pressured than at either Jolokia 1 or Habanero 3. The existence of this fracture is indicative of a saturated and over pressured reservoir comparable to those observed at both the Jolokia and Habanero locations. During the process of stabilising the well with heavy drilling mud, the drill pipe has become stuck in the well. A program of actions to release the drill pipe has been implemented. Following release of the drill pipe, it is expected that a further 50m of the granite (to approximately 3,750m) will be drilled, logs will be run, and the flowing fracture will be cemented before drilling continues on in the granite. The planned total depth is 4,300m; however, the well may be deepened to further evaluate the granite reservoir in the Savina region. The Savina 1 surface location is approximately 10 km WSW of Jolokia 1 and 19 km west of Habanero 3.
Closed Loop Flow Test Update
During the recently announced cleaning and inspection schedule it was observed that a number of the inspection plugs and washers associated with the cooling tubes in the heat exchanger were leaking. The decision has been taken to replace these plugs and washers. These components (and additional spares) are currently expected on site later this week and once received and installed, the circulation pump and the loop will be re-started within 24 hours to continue the closed loop test. As previously advised, the flow test is scheduled to run for a total period of six weeks. Upon completion of this test, the results will be subject to a period of external review and validation. A successful validation will mark the completion of Stage One of the Company’s business plan i.e. ‘Proof of Concept’.