I know there has been a post on this previously but no one has mentioned it for a while: New drill rigs specifically designed for geothermal claim to be able to reduce drilling costs by 50-75% due to easier mobilisation, faster drilling, less fuel use and a much smaller team required to operate the rig.
This rig, the GT3000, will drill its first deep hole in November. All indications from testing so far have been that it will work and the designer, Warren Strange, has an excellent reputation. There are also plans for a GT5000 which can drill to 5km depth.
Surely even a 50% reduction in drill costs would have a huge effect on the economics of all geothermal projects, especially for the likes of ptr and pax who have spent a fortune on drilling (>15million for 1 well I believe in some cases).
To me this is an example of how the cost curve of geothermal could come down very steeply. From what I gather, geothermal companies are beating down ckk's door to book this rig (pending a successful November deep hole job for AWT).
Is anyone with me that these innovations in drilling will be game-changing for geothermal in Australia?
PTR Price at posting:
10.5¢ Sentiment: LT Buy Disclosure: Held
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