Geodynamcis so far received $6.4 m from insurance claim on Habanero 3
Aerial view of Habanero-1 in the Cooper Basin, Geodynamics site (source: pesa.com.au)
Alexander Richter
14 Dec 2011
Australian Geodynamics reports it has so far received $6.4 million towards the final settlement of the Habanero 3 insurance claim, with about $1.3 million outstanding and expected to be paid by the end of the year.
In a release today, Australian “Geodynamics Limited (ASX: GDY) advises that since reaching settlement on the insurance claim for the Habanero 3 well control incident, $6.4 million or 84% of the net proceeds has been received by the Company with the balance expected to be received by
the end of December 2011.
In November 2011, the Innamincka Deeps Joint Venture reported that it was to receive a gross payment of $12.0 million finalising Parts B and C of the Habanero 3 insurance claim to cover redrill and environmental expenses. Net proceeds to the Joint Venture after loss load deductions were approximately $10.8 million with Geodynamics share totalling $7.6 million.
Geoff Ward, Managing Director and Chief Executive Officer of Geodynamics said, “Finalising the Habanero 3 insurance claim has been one of the Company?s key internal measures to support funding of the proposed work program commencing with the drilling of Habanero 4 in first quarter 2012. The insurance settlement in concert with the announced accelerated federal government funding under the Renewable Energy Demonstration Program (REDP) positions Geodynamics well to further our appraisal program.”
The figure of $7.6 million is in addition to a net amount of approximately $4.0 million paid by the insurer to Geodynamics for settlement of Part A of the claim announced in April 2011.”
Source: Company release (pdf)
