future planning

I sent the following email to the MD after his AGM presentation and received the following reply.


Dear Sir,

As a long standing shareholder I was very disappointed with your presentation, as it failed to mention specifically

1. The status of and remedy to recover the previously drilled holes(now sealed).

2. The status and reconnection period for the Innaminca 1mw power station


Your comments on the above points would be appreciated.


Regards.....Rxxxxx Txxxxxx


Dear Mr Txxxxx,

Thank you for your feedback. I will attempt to answer your questions below:

1. The previously drilled wells at Habanero are not planned to be recovered and used in the near term. They have all been secured, either with cement plugs (at Habanero 2 and 3) or are being closely monitored (Habanero 1). With regards to Habanero 3 the Company does not know the extent of the damage to the well at depth and therefore does not know how much it would cost to remedy the situation at that site. The Company has learnt an enormous amount from the wells drilled at the Habanero site and to that extent has taken the decision that it would be a much more efficient use of shareholders funds to undertake additional activities away from Habanero to further the work program and get the JV parties to a point where they can make the investment decision to construct the Commercial Demonstration Plant, as outlined in the AGM Presentation. The Company may take the decision further down the development path to re-enter the Habanero wells and recover them but at this point that activity is not part of the work program.



2. The timing of the commissioning of the 1MW plant is uncertain at this time as the location of the wells for the doublet following the work at Jolokia doublet has yet to be determined. The Company is currently undertaking a piece of work to determine the optimal location and timeframe for the operation of the 1MW power plant. The Company is hoping that it will be able to provide more information on this later in this financial year, once the piece of work is completed and a decision has been taken.



I apologise if I haven’t been able to answer your questions to the fullest extent possible, but these operational decisions just haven’t been made yet. If you have any further questions please contact me.



Regards



Alistair Webb
Commercial Manager