First wells provide invaluable lessons for future development

Geodynamics has learned a great deal through the process of drilling five deep wells (Habanero 1, 2, 3, Jolokia 1 and Savina 1), creating the reservoir at Habanero and flow testing between Habanero 1 and Habanero 3.

Building on the lessons learned from the drilling of the Habanero wells with its LeTourneau Lightning Rig (Rig 100), Geodynamics completed Jolokia 1 in September 2008, drilling to a depth of 4,911 m. Jolokia 1 is the hottest well on mainland Australia, known to be 10 degrees hotter than the Habanero wells located nine kilometres away. Successful stimulation of Jolokia 1 during the next year will confirm the capacity to create heat exchange reservoirs at locations spread across the resource and satisfy one of the key milestones toward making the decision to proceed with the commercial demonstration plant.

Savina 1 was drilled a further 9 km west of Jolokia and was secured with a cement plug at 2,640 m after a program of actions to recover stuck drill pipe was unsuccessful. Before the stuck pipe event, the well had intersected overpressured fractures similar to those at Habanero and Jolokia. A decision was taken on 5 March to redeploy Rig 100 at Jolokia 1 where stimulation activities are planned.

The Habanero 3 incident has been a very important event as it brought sharply into focus how much EGS in the Cooper basin is pushing the envelope of existing technologies. However, the incident and resulting investigation have made the path forward much clearer, with the appropriate balance of measured risk taking and application of robust technology will lay the foundation of a program to progress EGS on the path towards commercialisation.

The lessons of the past year have driven a shift in the way Geodynamics addresses the technical challenges it faces in bringing this resource to market. This shift has identified a series of activities that need to be incorporated into the ‘way we do things here’ to deliver on the company vision. Some of these activities are outlined below:

• Partnering with engineering and modeling specialists to deepen the global expertise on well design for EGS, its operation and maintenance;
• Using the newly gained insight to determine best material solutions for production and injection wells;
• Enhancing critical design and operational features such as cementing and tubular handling;
• Widening the knowledge of multi-component but single phase brine behaviour under extreme pressures and temperatures regimes;
• Enhancing the current well delivery process with a more robust Quality Assurance and Quality Control component geared for unchartered technical territory; and
• Upgrading contracting strategy and contracting management processes to ensure systematic quality thinking for well design and construction is a main value-driver.

The Company is currently incorporating these activities into the standard operating procedures of the company.

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