ann re olympic dam project, page-13

Thanks for the reply, Ashwil.
It would be great to see what Geothermex chose as input data.

An HDR system like GRK's, with similar geological conditions, is without precedent. CSIRO have not even done shallow level artificial stimulation. We do not understand the flow rates, because we have no indication of the surface area and contained volume of the final engineered system.

Ortahaza failed on what could be simplified as flow rate issues. In conjunction with temperature, this is the primary mechanism behind viability.

This factor is fully understood by Geothermex, so I guess we can assume they omitted flow rates from their assessment. Perhaps they have based their calculations upon current thermal gradients, and used temperature indicators in isolation to calculate a MWe per well figure.
This would mean that the 7.6MWe figure stated indicates (as you surmised) a maximum recoverable resource.

Unfortunately, the figure goes nowhere towards describing the viability of commercial extraction, due to that fact that the parameters of their equation can not take the rate of heat recovery into account.

It proves, in effect, what we knew - that GRK are sitting on hot granites, capable of producing heat. To say they can produce 7.6MWe per well is actually very misleading, in my view. The production capacity per well will be defined by the relationship between temperature and flow rates (with flow rates being a function of pressure and reservoir permeability).

I think economically viable flow rates will be realised upon the target-depth stimulation, but until then, it is understandable why the recent announcements have failed to excite the market.

Does anyone else have any guesses as to how they came to their figure?

Not trying to trash talk the company here, and I'm an enthusiastic holder of GRKOA, but am consistently surprised by the figures that surround the O.D project, as they always arrive with positive spin despite the partial data vacuum.

The Geothermex data will be very useful once flow rates are established. Bring on target depth Blanche2, I say. Until a JV is hammered out, and a rig is acquired, it's all just conjecture, and there is no reason for GRK to warrant any more attention than URO or even TEY.

I think that news will just hit us out of the blue one day soon (after Blanche1 fraccing is my bet), and I would expect any number of major oilers may be circling GRK right now. The market cap is peanuts for these shoppers, practically worth the green publicity alone!