what's happening in merredin?, page-6

Despite saying I wouldnt go if.. I went to the expo yesterday anyway.

I am unsure about what the coretrack rep was really allowed to say, but he sure said a lot and wasn't bothered about trying to stop him. Warren was there but not present, it was around 6pm was absent the 20 minutes I was there (probably downing beers like the rest of them this time of the day).

Asked about the well head - He said it hadn't arrived yet and that it was taking 6 weeks. I should have pressed him further about the timeframe, since I assume this is either from the ann (3.5 weeks ago) or even earlier.

Asked about contracts - He said there were several parties on the go and that he was expecting that the test hole wouldn't be completed because of this (one of the first things he was keen to promote). In addition the well would still have to be sealed and this will pend on the date of the well head arriving. He was expecting it to be done soon, so I assume within a week or two.

Contract types - Asked about geothermal, which he said at this point geothermal in australia isn't too feasible due to depth and energy returns. He did mention something about Indonesia next year in a geothermal capacity, saying that the holes were pretty shallow there in comparison and had more money thrown at it. There was mention of even a smaller job with multiple water bores.

Contract with - Big players or small. Most of the interest is coming from smaller players, at this point in time no larger players have shown significant interest. I asked about Woodside and he said that they mainly deal with offshore drilling while they are onshore, meaning their dealings (at least with the GT3000 and further models) with Woodside would be limited. It seems like there is a lot of interest with smaller companies and hence the problem with timing, as he said dates are a large issue because capital raisings rather than having the money on hand.

Auxiliary equipment - It came out in conversation - that they didn't have all the bits that they wanted. I assume on that basis they will choose the jobs they can do initially without it and pick up the parts as they go along.

More drills - Yes. Wants to get all the extra auxiliary equipment first although the quantity and method were omitted with the exception of hoping for a partnership of some kind.

Money - Said they had enough for 2 months. 1 month if drilling (I was hoping they had more). If contracts are not finalised, they will continue drilling the hole at Merredin.
I said to him without the gt3000 as an acquisition, things may not be looking so bright - which he concurred suggesting the MC would probably be only 4-5mil on the back of the CLRS alone.

CLRS - Said it was going according to plan. Also mentioned the difficulty when trying to estimate timelines for R&D and the frustration of having to provide a set timeline (ie for the market) and not being able to meet it (nor estimate).

Timeline/Immediate future. - He said that it was felt that they had about a months leeway in terms of action, before really feeling the pressure (shareholders/money etc). Said that other shareholders and business prospects had been very positive during the course of the expo.

Very informative overall - glad I went.