From: Elizabeth Gerrard...

From: Elizabeth Gerrard [[email protected]]
Sent: Friday, 23 October 2009 12:52 PM
To: @
Cc: Jane Lowe
Subject: FW: ASX ANNOUNCEMENT 20 OCTOBER 2009

Hello *

Thank you for your email regarding the forward work program announcement.

The Habanero 3 well will not be operating in the near future as it is damaged and was pumped full of mud to stop the flow. The insurance claim is still being processed, but once the claim is approved we expect to drill a replacement well at Habanero. I do not have a time frame for this but expect it may be considered by the Joint Venture partners after the program of work at Jolokia is completed. The forward work program announcement indicates we will drill doublets (two wells) after Jolokia, but does not specify a location as this has not been worked out yet.

We are now looking at the costs involved in relocating the 1 MW power plant from Habanero to another site on our tenement or whether it is more economical to to build a new power plant. The reasoning behind relocating the plant is that there are long lead and delivery times to be considered in re-ordering plant components to build another power plant at Jolokia or Savina. While these components are already available and not being used at the operations, it may be cheaper to move the components to another location. This will require rework but may be faster and cheaper. No decision has been made by the JV partners about the 1 MW plant.

In order to demonstrate that we have the resources required to fuel a commercial scale demonstration plant, we must demonstrate that we can access flowing fractures in other parts of our tenement. For this reason we are returning to Jolokia to hydraulically stimulate the granite and increase the size of the small fracture intercepted there during drilling. This program of work will commence in 2010 after we have completed the well - that is to insert a new casing tube the length of the well to ensure reservoir fluid does not come into contact with the existing casing which is the same as that used in Habanero 3. This new casing will mean the well is thinner but still able to be used as either an injection or production well.

I understand that the announcement did not meet your information needs and I have included your comments in feedback to management. We are preparing the text for the September Quarterly Report and will aim to provide more detail about Habanero 3 and the plant in this document.

Thank you for taking the time to email us and please feel free to call me if you would like to talk about our program more.

Regards

Elizabeth Gerrard
Investor Relations & Public Relations Manager

Geodynamics Limited
Level 2 23A Graham Street
PO Box 2046 Milton QLD 4064 Australia
Tel +61 7 3721 7504 fax +61 7 3721 7599
Email [email protected] Web www.geodynamics.com.au


-----Original Message-----
From: * [mailto: @]
Sent: Wednesday, 21 October 2009 9:01 PM
To: Cassandra Strike
Subject: ASX ANNOUNCEMENT 20 OCTOBER 2009

Hello :)

This enquiry is about the announcement dated:

20-Oct-2009
"Project Update - Forward work program Innamincka Joint Venture"

There is no mention of Habanero-3.

What is the situation regarding Habanero-3 ?

Thanks !


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