flow test announcement out

Announcement on the website (also a couple of pics not shown here)...

Geodynamics is pleased to announce that Habanero 3 well was first opened under
controlled flowing conditions on Friday 14 March 2008. The well cleaned up rapidly
from drilling mud and assumed relatively constant output. The well is sustaining
production of 18 kg/second at a flowing pressure of 27.5 MPa (3,990 psi) through a
12.5mm fixed choke. Current flowing temperature is 208 °C. The flow is directed to
a steam separator designed for up to 25 kg/second input. A variable choke capable
of increasing production is available for trim (finely adjust the flow rate). In one short
experiment lasting 3 minutes the variable choke was opened to 100% and production
of 40 kg/second was sustained over that period.
Productivity is 400% higher than that obtained from Habanero 2 in 2005 (at its higher
rate) where lost down-hole equipment impeded flow and eventually caused blockage
from the main fracture zone.
During production and shut-in of Habanero 3, the monitored well head pressure at
Habanero 1 responded as expected, indicating good communication between the
wells at 4,250m depth.
The flow testing of Habanero 3 will shortly be followed by combined flow from
Habanero 3 and re-injection into Habanero 1. On Sunday the high pressure pumps
required for the re-injection arrived on site.


The Company envisages making a further announcement in approximately one week
on the progress of the circulation test.
Jolokia 1 update
The spud of Jolokia has been delayed due to difficulties re-commissioning the top
drive system after a warranty replacement of the top drive, its associated carrier
assembly and service umbilicals. Geodynamics is working to resolve the problems
with the equipment manufacturer, LeTourneau and with the assistance of our lead
contractor Easternwell. It is currently anticipated that these equipment issues should
be rectified by Wednesday 19 March.

Jolokia 1 is located approximately 9km from Habanero and is targeting fractured
granites at a similar depth known to be 10°C hotter than the Habanero wells.