gdy 105 million jv origin energy, page-60

Ha ha thanks NS.

I just thought some people would like to read an excerpt from Huntleys', regarding the Origin deal:

"GDY has agreed to farm-out a 30% interest in its South Australian geothermal tenements and Lightning drill rig to Origin Energy Limited (ORG). The deal requires December GDY shareholder approval to proceed. ORG is already a 10% shareholder in GDY. In addition to its 30% share of on-going project expenditure, ORG will pay $96m towards project costs as incurred. An extra $9.6m will accrue if GDY completes Stage One 'proof of concept' within budget by March 31, 2008. GDY remains operator and will also retain any monies granted under the Federal Government's Low Emissions Technology Development Fund by mid December, 2007.

ORG brings a quality balance sheet and commercial acumen. It has agreed to provide technical support and secondments to assist in project development. The deal will also allow acceleration in development plans. Those plans are for completion of the circulation flow test, construction of a pilot plant, construction of a 40MW plant by 2010 and a build-up to 500MW via additional modules by 2016. To achieve the target GDY will require multiple drill rigs. ORG's funds will be used to drill the next three to four wells, upgrade the known resource to proven reserves, fracture the granite to better mine the heat and build the small pilot plant between Habanero 1 and 3. "

The author of the above article stated an expected completion date of HAB3 to occur in December.