trading halt, page-3

All looks good here

ASX ANNOUNCEMENT 3 JULY 2008
Cooper Basin Project Update
Jolokia 1 Drilling Progress
Geodynamics advises that the drilling of Jolokia 1 is progressing well. The 244 mm
(9 5/8”) diameter casing has been run successfully to its design depth of 3,776
metres and the annulus has been fully cemented.
The forward drilling program will now focus on completing the well to intersect the
target fracture zone. The casing and cement job has been pressure tested to prove
its integrity, and drilling has commenced in the 216mm (8½”) open hole section using
the proven managed pressure drilling approach to drilling the fractured granite. The
current depth is 3,818 metres.
Geodynamics advises that at a depth of approximately 3,805 metres, the first small
fracture in Jolokia was intersected. This is exciting news as it confirms existence,
earlier than expected, that the Jolokia location has water saturated over pressured
granites consistent with the three Habanero wells. The purpose of stepping Jolokia
out 9 km from Habanero was to indeed confirm the consistency of the targeted
granites.
Steam flow from Habanero 3 on 19th June 2008
Jolokia 1 is located approximately 9 km from Habanero and is targeting fractured
granites at a similar depth known to be 10°C hotter than the Habanero wells. Its
target well depth is 4,250 metres