blanche one fracturing, page-2

what the company says about Blanche frac stimulation
from a corporate Open Briefing in September 2007

corporatefile.com.au
You have announced that the next step in evaluating the suitability of the Olympic
Dam rocks to support a geothermal energy project is to conduct a mini-frac. Can
you describe the mini-frac process, how it works and what data you hope to
obtain?

MD Adrian Larking
The mini-frac process, involves pumping water under pressure into the hot granites
in our existing well, Blanche No.1. The pressure opens up existing fractures,
cracks or zones of weakness, in the hot granites. We measure the magnitude of the
pressures required to cause them to move and dilate. This pressure is determined
by the strength and direction of the prevailing stress on the buried granites. From
CSIRO’s previous research on the stresses in the hot granites, we already know the
expected direction of the movement. The mini-frac will confirm this and quantify
the actual pressures at which the granites will open at various depths. We will
install seismic stations on site to monitor this effect. The testing should only take a
few weeks.

The results of the mini-frac will be used in the design of two deep wells, to be
drilled down to approximately 5km, and the associated water circulation testing.
These two wells will be used to drive a 3 to 5 MWe pilot plant, which will
complete the evaluation stage of the project. The design and development of the
commercial power plant operation will then occur, based on the findings from the
drilling, water circulation testing and the pilot plant.

My comment - from talking with the company, the frac testing will provide important data for engineering and design regarding piping, pumps, and location. A rig has been ordered and scheduled.