Making the assumption that drilling and flow tests proceed successfully, there is ongoing geological upside. The flow tests and demonstration plant construction will not be static phases for the Lightning Rig. The management are acutely aware of the need to retain the services of EWS, and enhance their skills with continuous drilling. This, and an ample budget, will allow GDY to drill continuously over the coming months and years.
HAB3 is intersecting a geological unit that is unsurpassed in quality, but it is unlikely that the conditions it displays are the most promising in the GELs. With multiple wells, planned, the probability of HAB3 intersecting the best combination of fracturing and volume is low. Despite the incredibly encouraging results, and the previous flow rates that were too high for normal prediction, the best is overwhelmingly likely yet to come.
Further HAB wells will intersect a variety of conditions, all based around the natural fractured reservoir system that permeates the area. By natural variation, some of the wells will allow for much higher flow rates and significantly higher economic extraction of heat.
By allowing drilling to continue, GDY will not only extend the resource, but it is very likely that the resource will be upgraded in grade to allow for a more efficient extraction.
RNE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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