4000psi on geothermal frac, page-4

Sirsenor,

This announcement relates to the geothermal energy prospect they are drilling in conjunction with Petratherm and Tru Energy. What they are trying to engineer is a heat exchanger at the bottom of the hole, about 3,600m down. To do this they need to first drill the hole down, then pump liqiud into the surrounding rock at the bottom of the hole at high pressure (4000 psi). This is to open up the cracks in the rock so that water can pass through and collect the heat.

By recording where the microseismic cracks occur, they can determine where to sink the second well. The idea being that they pump water down the first hole, it works its way through the cracks in the rock getting a lot hotter in the process, and then it finds its way up the second well, and into another heat exchanger at the top, from which they can generate electricity.

The report is pretty positive in that they are recording cracks occuring over a wide area, and with more extensive fracturing to occur. But as Geodynamics found out, problems can occur when you try to get circulation.

The issue they have identified, as I read it, is that the pressure built to a high level (4000 psi) and they are not sure if it's due to the overpressure in the rock at this depth, or because no more rock would fracture. They should resolve this with the more extensive fracturing they have planned.

I hope they do well, but I don't think this project is material to the BPT share price in the near future - like next 2 to 3 years. Given Geodynamics problems some faith in the technology has been lost.

Hope that helps,
Redfloyd