Geodynamics still seeking proof of concept Wednesday, 2 April...

Geodynamics still seeking proof of concept

Wednesday, 2 April 2008

GEODYNAMICS has delayed the Habanero-3 well's maximum output flow rate without circulation test, due to recalibration of some surface protection equipment.

The test was scheduled to begin following the completion of the open flow test phase of the circulation testing program.

Geodynamics said the open flow test phase has been completed and the second test is now scheduled to begin on April 21.

The company said it will start the closed loop test once the maximum output flow rate without circulation test has been completed.

The closed loop test is scheduled to start in mid-May and will run for six weeks to determine the contact fracture surface area.

Once this test has been completed, stage one of the first phase of the company’s business plan, which is to establish “proof of concept”, would have been fulfilled, according to Geodynamics.

Geodynamics’ partner Origin Energy has agreed to contribute an additional $9.6 million to the company following completion of the circulation testing program.

Origin will review the costs associated with this phase and make a decision whether to contribute additional funds by May.