Geodynamics Cooper Basin Project: Status and forward plan 2010 and beyond Gerry Grove-White | Geodynamics Limited
Important notice Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only as of the date of this presentation. This presentation should not be relied upon as a recommendation to buy or sell shares by Geodynamics Limited. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in Geodynamics Limited. All references to $ are references to Australian dollars unless otherwise specifically marked. The information in this report that relates to Geothermal Resources is based upon information compiled by Dr Doone Wyborn, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Dr Wyborn is employed by Geodynamics Limited. Dr Wyborn has sufficient experience which is relevant to the style of geothermal play under consideration to qualify as a Competent Person as defined in Edition 1 (2008) of the “Geothermal Reporting Code, 2008”. Dr Wyborn consents to the inclusion in the report of the above information in the form and context in which it appears.
The Geodynamics vision “Geodynamics will become a world-leading Australian geothermal energy company, supplying competitive zero carbon energy and base-load power”
Reminder of why we are here • Significant global EGS resource in the Cooper Basin • Potential for 10,000 MW of baseload emission free electricity generation capacity • Long term goal of sub $100 / MWh power cost (delivered into grid) • Size and quality of resource outweighs any distance concerns Long term goal of the Joint Venture with Origin Energy remains to bring this considerable energy resource to market
Reminder of why we are here TEMPERATURE IS KING! • Cooper Basin has hottest known rocks of its type in the world • Commercial viability of all renewable sources will come down to the most efficient use of capital • Lowest Capex per unit of useful energy will be most competitive • Geodynamics believes the Cooper Basin EGS resource will be the lowest cost renewable source in Australia – delivered sub $100 / MWh
Reminder of why we are here
Recap – Past 12 months „Proof of Concept‟ achieved • Culmination of work to date • Long term closed loop test between Habanero 1 and 3 • Pumping issues overcome – invaluable lessons learned • Independent sign off by world leading experts • Important to distinguish between „Proof of Concept‟ and commercial demonstration Dr. Doone Wyborn is giving a detailed paper on the process during the technical sessions
Recap – Past 12 months Wells drilled at Jolokia and Savina • Confirmation of granite body at ~3,800 m depth • Intersected saturated, over-pressured fractures in granite • Good temperatures at 4,900 m (J1) • Progress in validating the geological model 9 km and 19 km from Habanero • Assist in reserves delineation
Recap – Past 12 months Habanero 3 well control incident • Timing unfortunate • Successfully controlled • Professional independent investigation • Hydrogen embrittlement of steel casing caused casing to fail • Absence of complete data meant wrong grade of steel selected in presence of H 2 S and CO 2 concentrations • Better to find out now than when 100 wells are operating cont…
Recap – Past 12 months Implications of Habanero 3 Incident • Habanero wells secured • Different grade of steel required for well casings • No material impact on well cost from different material • Management action plan to improve planning and QA processes • Revised work program • Delay to 1MW Power Plant commissioning • GeothermEx confirmation that „Proof of Concept‟ remains valid despite Habanero 3 Incident
Recap – Past 12 months Successful REDP Application • $90 million secured • Staged payments over project delivery period • Strong endorsement in the Company and the project from the Federal Government • Objective to deliver 25MW Commercial- sized Demonstration Plant - minimum size to satisfy lenders • Will lead to commercial expansion in the Cooper Basin
Commercial-sized Demonstration Plant Commercial demonstration plant – concept design
Timeline to Commercialisation Key Points: • CDP required to secure financing • Importance of getting to FID on CDP • Realistic expectations on rig availability and construction timeframes • Co-incidence of transmission line commissioning and commercial expansion
Getting to FID on the CDP Final Investment Decision to build a CDP cannot be taken until Joint Venture parties are comfortable that commercial expansion will / can occur. Need to demonstrate: • Repeatability of process across tenement / reserves delineation • Heat extraction at commercial flow rates greater than „Proof of Concept‟ tests • Pathway to long term economics through reduced costs • Execution capability
Work program: 18-24 months Complete Jolokia 1 • Stimulation • Demonstrate injectivity rates Drill Jolokia 2 • Stimulation • Establish connection with J1 • Long term doublet testing Drill well 1 – second doublet • Location to be determined • Fracturing at multiple levels • Flow test Drill well 2 – second doublet • Demonstrate multi-fracture drilling • Establish connection Geothermal Licences in the Cooper Basin • Undertake flow testing
Technology development / deployment The following technologies are being developed / deployed over the next 18 to 24 months: • High temperature logging for prospective fracture zone identification • Preferential fracturing (controlling where fractures occur) including the basic science behind fractures and frequency of fractures within the granite • Down hole isolation • High temperature elastomers • Multi fracture drilling • Drilling technologies such as impact drilling and thermal spalation • Near field well bore flow enhancement • Down hole flow control • Managed pressure and underbalanced drilling • Well completions and pressure drop reductions • 2 Phase expanders • Pump technology • Heat exchanger design and computer models • Stibnite management
Thank You Acknowledgments: Geodynamics wishes to thank our Innamincka Joint Venture Partner, Origin Energy, for their continued support.
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