2.6 million reasons why origin loves us

A nice endorsement to see Origin energy take up another 2.6 million shares and 1.3 million options. Hopefully everyone topped up today and yesterday, stag profiteers have just managed to suppress the option price enough for a good accumulation session. Bonus points are about to be awarded to the company with the most advanced drilling rig in Australia. Guess who that is....

Unbelievable leverage on the options cannot last.

Points to consider when looking to purchase into the industry:

1)Geodynamics have more experience than any other geothermal resource company in Australia. They have drilled far deeper than any of thier competitors, and as such have experienced and managed a far broader spectrum of 'growing pains' as they approach thier target. These issues have been analysed and addressed, and the Lightning Rig is thier answer.

2)Heat Grades Are EVERYTHING. Heat grades have such an impact, with heat grades having the same expontial effect of commercial viability as gold grades do to a gold miner. GDY absolutely dominates the field in this respect. Actual measured temperatures in HAB 2 were 250-300'C, absolutely outclassing PTR's 109'C measurement, which they 'hope' to upgrade when a rig becomes 'availible', not a common occurence in a commodity boom.

300'C is not even the final target for GDY, as HAB 3 will be deeper and hotter.

3) GDY hold exclusive Australian rights to the Kalina Cycle, further improving the effeciency of the power generation process by 20-30%. Offset this againt the estimated 5-8% transmission loss, and you get:

The hottest rocks, with the most efficient production cycle, under the control of the most experienced management team, who just so happen to have aquired the most advanced rig in Australia. On top of this, GDY has measured the energy reserves of thier 2500 square kilometre tenements to be in the region of 390 000 Pj - Australias gas reserves are only 140 000 Pj.

So when the hole is drilled (which should begin in June when the rig arrives), and circulation is re-demonstrated between two holes, GDY will be eligable for the next round of LETDF funding grants from the government. A nice 8 figure sum to complement the first 5 million GDY has already recieved.

A 40MW station is the first target, but the fact that you can just replicate the whole system over a horizontal plane and increase the number of holes to multiply efficiency, means final production estimates are just not possible. The potential power output of the Cooper Basin project just cannot be estimated, because there is NO UPPER LIMIT on just how much electricity they choose to generate. The imagination runs wild, and thats what we want. As investors increasingly realise there is an untapped, renewable, zero-emission, practically limitless source of power, things are going to get really, really big.

With power to be delivered to the grid in just over 2 years, this has to be one of the most promising plays on the ASX

I believe the options to be best value at the moment, as the arrival of the lightning rig and the succesful drilling of HAB 3 see some sharp increases in the SP.

Cheers to holders