Geodynamics

Geodynamics is pleased to
report progress on the Company’s activities during the September 2008 quarter.
Highlights for the quarter include:
• Origin Energy confirming the achievement of the first key milestone in the Joint Venture; completion of the Habanero 3 well and the open circulation test between Habanero 1 and 3 on time and within budget; and consequently
• Origin Energy committing a further $9.6 million to the project expenditure;
• The Board appointing Mr Keith Spence (ex Woodside) as a non-executive Director;
• A third cornerstone investment by Tata Power who subscribed for 11.4% of the Company’s current issued share capital;
• Contract for a second heavy drilling rig from National Oilwell Varco (NOV); and
• Completion of Jolokia 1 (fourth deep geothermal well) to a depth of 4,911 m.

Geodynamics and Origin Energy reach renewable energy milestone in Cooper Basin Joint Venture
In July Geodynamics and Origin Energy confirmed the achievement of a key milestone of the joint venture in South Australia; under the farm-in agreement, Geodynamics successfully completed the Habanero 3 well and the open circuit circulation test between Habanero 1 and Habanero 3, on time and within budget. Achieving this milestone represents an important step on the road to developing this significant renewable energy source.
In recognition of this milestone under the joint venture agreement, Origin Energy made a further commitment of $9.6 million to project expenditure, bringing Origin’s total commitment to approximately $150 million.
Grant King, Managing Director, Origin Energy said, “This marks a further step on the road to better understanding our Australian geothermal assets. With this milestone achieved we can now move towards actually harnessing the energy contained in Australia’s hot-rock resources.”
“We strongly believe in the growth opportunities of our low-carbon technologies in geothermal, solar and gas. Geothermal energy will play an ever more important role in securing the growing global need for clean energy technologies.
“Australia’s natural geothermal resources
are among the best in the world and we believe geothermal energy has a key role to play in meeting Australia’s emissions reduction targets foreshadowed through an emission trading scheme, as well as the planned renewable energy targets.”