This thought sometimes comes up as being a solution that could have very positive outcomes for both companies, and it is for Geodynamics to buy into PAX and bring their drill down to Penola to turn it into Swiss Cheese and start putting electricity into the grid. I know it is not quite that simple but you get the idea.
The drilling rate of metres per day at SAL 1 Penola was very very good, the Weatherford drill sat idle for a significant period of the contracted time it was there. GDY have a similar or same type drill that was used at Penola. The type of drilling fluid/mud has been identified as one of the setbacks at Salamander and various reasons have been given for it's selection and various alternatives have been given as it's replacement for further development.
The "single hole" heat extraction method which was chosen for cost reasons for a tiny demonstration plant, is never going to be as good as a multiple hole heat extraction method and IMV it would be worthwhile to redrill/unblock SAL1 and drill another hole while the drill is in the area, not too far away from the first so that the second hole can be either an input or an output as part of a much larger field of holes which is what the area requires to be income productive.
The isolation of PAX's Indonesian projects as a business makes PAX's Australia projects less of a cost at the moment as a takeover/merger target and as both GDY and PAX are looking for ways to get going in a difficult market, a partnership at Penola with GDY appears a likely way for both companies to move forward.
The resource is there and the grid is close by.
just my thoughts
ifandwhen
RNE Price at posting:
22.0¢ Sentiment: LT Buy Disclosure: Held
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