Geodynamics reassures market on Innamincka Deeps project
Innamincka township, Cooper Basin, Australia (source: Geodynamics)
Alexander Richter
28 Jun 2011
Following recent share price development, Australian Geodynamics rassures shareholders that the company remains fully committed to its Cooper Basin geothermal project, the Innamincka Deeps Joint Venture with partner Origin Energy.
In a release this morning, Australian Geodynamics reacts on the recent drop in share price across the board of geothermal stocks in North American and Australia.
“In light of the recent share price performance, the Directors of Geodynamics Limited would like to reassure shareholders that the Company remains fully committed to its Cooper Basin geothermal project.
Geodynamics advises that review of the forward work program for the Innamincka Deeps Joint Venture (“Deeps”) with Joint Venture partner, Origin Energy is advanced.
Geodynamics continues to work closely with Origin Energy to fully evaluate the most appropriate next technical and commercial steps to develop the Deeps geothermal resource with a view to finalising program approval in July. Geodynamics is pleased with the progress that has been made and the support received from Origin Energy. A clear program of major activity has been proposed for the coming year and focus remains on delivering near term
value to shareholders through commissioning the 1 MWe Pilot Plant as early as possible in 2012. An update will be provided once the program has been finalised.
Geodynamics has a strong balance sheet and will fund its forward work program with its existing cash resources, Government grant funding and other assets. The Company will continue to closely manage available cash and assets to ensure that adequate funds are available for program delivery.
The Company?s cash balance as at 28 June 2011 is approximately $29.1 million.
This position is enhanced by the $90 million federal government Renewable Energy Demonstration Program (“REDP”) grant which will be drawn down against program milestones. The next payment under the REDP will be received upon the completion of drilling Habanero 4 and is scheduled to be $10.3 million.
The Company is also assessing opportunities to leverage its drilling rigs by sale or lease. Innamincka Shallows Joint Venture Update Discussion continues between Geodynamics and Origin Energy on the objectives and location for a second exploration well to be drilled by the Innamincka Shallows Joint Venture. Origin Energy as Operator of the Joint Venture will provide an update to the market once the program is finalised.
