announcement

Cooper Basin Project Update

Savina 1 Drilling Progress

Geodynamics advises that Savina 1 is currently drilling ahead in the Patchawarra Formation at 3,244 metres in the 311 millimetre (12-1/4 inch) diameter hole. Since
the previous update on 5 December, 333 metres have been drilled. Drilling in underbalanced mode has begun and has resulted in an increase in rate of penetration (ROP) being achieved.
The planned total depth is 4,300 metres; however, the well may be deepened to further evaluate the granite reservoir in the Savina region. The Savina 1 surface location is approximately 10 kilometres WSW of Jolokia 1 and 19 kilometres west of Habanero 3.

Innamincka 1 MW Power Plant

The construction of the Turbine Hall and Visitor Centre is complete with the building handed over to Geodynamics early in December. Work continues on the fabrication and installation of above ground plant with commissioning of the 1 MW Power Plant planned for February 2009.

Closed Loop Flow Test Update

Geodynamics advises that the closed loop flow test has officially commenced. The re-injection pump was restarted on Thursday 11 December 2008 and ran continuously without incident until Wednesday 17 December 2008, when the system was shut down for a period of 5 hours to allow for the injection of two benign chemical tracers into the loop.
The pump was then restarted and the closed loop flow test officially commenced. The system is currently operating as expected.
As previously advised, the flow test is scheduled to run continuously for a period of six weeks. Upon completion of this test, the results will be subject to a period of
external review and validation. A successful validation will mark the completion of Stage One of the Company’s business plan i.e. ‘Proof of Concept’.