Geodynamics reports geothermal steam
Shares in Geodynamics Ltd jumped almost five per cent on Wednesday after the renewable energy company reported the venting of geothermal steam for the first time.The recent release of the steam from its Habanero 2 site at the Cooper Basin in South Australia was a first for the company which is involved in the development of geothermal energy generation from hot dry rocks.Managing director Bertus de Graaf said the venting occurred during recovery operations to free up a lost drill stem."Overpressure encountered during the recovery operations, before the drill stem was freed, required temporary release which was accompanied by venting of geothermal steam, a first for the project," he said."This is a clear indication that the underground reservoir is in direct communication with the well."Mr de Graaf said the lost 245 metres of drill stem is most likely left behind at the bottom of the well but this requires confirmation.He said preparations are in place to resume operations with the side track drilling as soon as the drill stem is out of the hole.Shares in Geodynamics rose seven cents or 4.7 per cent to close at $1.55.ABN Amro Morgan resources analyst Roger Leaning said the market liked both the progress made on recovering the drill stem and seeing steam for the first time.He said the venting of steam was especially encouraging."That is also going to be a positive for people to think - 'hey there is some heat there'."It's something tangible for people to see this thing generating some thermal energy."The next stage is how they can capture that thermal energy."