Geodynamics plugging wells and rehabilitating Habanero site
Australian Geodynamics plugging wells and rehabilitating Habanero geothermal site in the Cooper Basin and reports no real activity for its Savo Island geothermal project in the Solomon Islands in the Pacific.
Going through the annual report (for the year ended June 2015) of Australian Geodynamics this morning, one can actually pick up on some activities related to geothermal, but essentially it seems like a complete loss of interest.
The company announced earlier that it would be focusing on looking for opportunities outside its geothermal business and describes it now as the “principal activity during the year”.
The company describes having been “focussed on accelerating our search for profitable growth investments in the clean technology sectors outside of geothermal developments.”
“Since flagging our new diversified strategy to the market many opportunities have presented in the areas of Clean Energy Supply and Services, Efficiency and Storage and Cleantech Industrial Services. Our focus on reducing operating costs and expenses over the past 12 months have resulted with the company having a strong cash position. This strong cash position together with our internal capabilities are key assets and advantages to successfully growing the Company beyond geothermal.
While actively seeking diversification opportunities we have continued to progress our existing geothermal projects to key milestones at low cost. In the Cooper Basin we have completed the agreed research and development program with Beach Energy regarding potential future uses for the Habanero Project and the Innamincka Deeps Granite Resources. In the Pacific Islands, we continue our engagement with host governments, electricity utilities, regulators, development agencies and local communities in Vanuatu and Solomon Islands to secure required environmental approvals and off-take agreements necessary to support further development activities. There continues to be strong interest in the development of renewable energy in the Pacific Region from major stakeholders and we will continue to work with all key stakeholders as we look to progress these projects towards achieving a return on investment for shareholders.”
But if one then digs deeper, it becomes clear that the company essentially abandons its geothermal activities in the Cooper Basin.
“The focus of activities in the Cooper Basin is on the planning and execution of the full remediation of the site in accordance with the Statement of Environmental Objectives. This includes the plug and abandonment of the remaining wells as well as the removal of surface infrastructure and rehabilitation of the site.
Having successfully completed the sale and transfer of the Habanero Camp to Beach Energy Limited, additional field works in the Cooper Basin will be undertaken to plug and abandon and complete site remediation works associated with the Habanero-4, Habanero-1, Jolokia and Savina well sites and the surface infrastructure within the Habanero site in line with our permit obligations.”
The only other geothermal business mentioned is the holding in The Solomon Islands in the Pacific. “In November 2012, Geodynamics Limited entered into a two stage earn-in and joint operating agreement with Kentor Energy Pty Ltd (“Kentor”), a subsidiary of Kentor Gold Ltd (ASX: KGL), to acquire up to 70% interest in a conventional geothermal power supply project in the Solomon Islands. Under the terms of the agreement, Geodynamics is entitled to earn an initial 25% interest in the Savo Island Geothermal Power Project (“Project”) following the completion of initial geophysical studies to determine target locations for a drilling program. The Company has the right to earn an additional 45% interest through exploration drilling and the completion of a feasibility study for the Project. In April 2013 Geodynamics fulfilled its commitments under Stage One of the Earn-In by releasing a Savo Island Inferred Geothermal Resource Assessment and became entitled to the initial 25% in the Savo Island Geothermal Power Project.”
There is though no real indication about planned capital expenses for this project or any other geothermal interest.
Source: Geodynamics Annual Report 2015 (pdf)