Ann: Habanero 3 Well Incident - Update , page-27

The multi fracture stimulation is really the only bit of R&D that GDY are doing and even that is not that unique. In my view there haven't yet been any major hurdles to geothermal power viability. There have only been some technical mishaps. The cause of the latest is not yet known. The Hab 2 problems appear to have been largely through use of non specification materials by Century Drilling.

Stuck drill strings will always be with us (a probability of 20% per well would only be a guess). The leak would be of very low probability and in my view should not have happened. I'm not sure that we will ever know the exact reason for it but no doubt they will stick even more meticulously to established procedure in future. The point here is that if this had occurred in a later one of the 9 hole array it would be regarded a non event by investors. There will no doubt also be other teething problems to come. Imagine how blase we will get after 50 of the 90 holes for the 500 MW scheme have been drilled.

Juke