I would suggest that the mini frac will be the next news to come. After that, the company will look to put some runs on the board in Hungary. Through the JV with one of the world’s leading geothermal companies (Enex), they will gain valuable experience. Hungary is also a conventional geothermal project as well. This is one of the things I like about GRK. They understand that EGS have a lot of potential but it is a largely unproven technology. GDY was lucky that they discovered a unique system, hence their share price. However, not all EG systems will be that lucky. How will they achieve the flow rates required for efficient and cost effective generation of electricity or water desalination? GRK understands that and that is the importance of experimenting with the mini frac. In time I believe that GRK will be the “go-to” guys for achieving an effective flow rate for EG systems, something that all geothermal systems require in order to be successful.
The conversion of the options in Apr will give the company $4 million which will place the company well for getting access to the Federal Governments Geothermal drilling fund.
GRK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
