Geodynamics closure on geothermal activities in Australia & Pacific
Geodynamics finalising remediation of its Australian geothermal project and announces having exited all interests in geothermal projects held in the Pacific.
Australian Geodynamics was one time the big star in the geothermal industry having been able to raise significant funds for geothermal development on the stock exchange between 2003 and 2008. While it was clear from previous announcement, that the company is leaving its geothermal legacy behind, it now seems that all geothermal ties of the company have been cut.
In its annual report for the year ended 30 June 2016, Geodynamics provides – likely the last – update on its geothermal activities.
Having abandoned its geothermal project in the Cooper Basin, the remediation of this project site has been a key focus for the Company. Geothermal wells Celsius 1, Jolokia 1, Savina 1, Habanero 1 and Habanero 2 are all plugged and abandoned with surface remediation completed. Habanero 3 and Habanero 4 are currently undergoing monitoring after having the cement plugs set. Plans for the final well barrier, surface plug and well cap for Habanero 3 and 4 are in place and will be executed once the monitoring period is successfully completed. The remaining surface remediation of the Cooper Basin site, removal of power lines and the transfer of various operating assets to third parties is expected to be completed this calendar year. The remaining liability for the Cooper Basin Remediation work is estimated to be A$0.8 million out of a total program of approximately $10 million. Net of Origin Energy contribution and R&D tax, Geodynamics outstanding contribution is approximately A$0.3 million.
Furthermore the company announces having the exit of all interests in the Pacific Islands geothermal projects. There are no material financial liabilities associated with these projects.