Origin Energy reports having written-of its share in its JVs with Geodynamics
Aerial view of Habanero-1 in the Cooper Basin, Geodynamics site (source: pesa.com.au)
Alexander Richter
29 Aug 2012
Australian Origin Energy reports it has written-off its share in the Innamincka Deeps JV with Geodynamics, its 50 percent share in the Shallows JV with Geodynamics and its own GEL-185 project at a value of US$34 million.
According to Australian news, the ongoing speculation on how and when Origin Energy will answer the continued struggles at the Geodynamics project in the Cooper Basin, the company now has decided to write off its investment in the JV at Innamicka Deeps.
Earlier this month the company opted out paying for a share for a cost overrun for the drilling campaign of Habanero 4. Earlier last week the company actually wrote off the entire value of the JV, saying the activities have “not met expectation for a timely and commercial development of the geothermal resources”, of the project.
Overall the impairment after tax for the total write-off of its Australian geothermal operations was A$33 million (US$34 million).
The write off includes the 30 percent share in the Innamicka Deeps JV with Geodynamcis, the 50 percent share in the Shallows JV with Geodynamics and its own GEL-185 project. The write off now comes after Origin Energy recognized an impairment loss of A$215 million (US$222 million) in relation to its Geodynamics JV and investment in Geodynamics stock.
At the same time Geodynamics reports having reached a “significant milestone” by “the target fracture zone having been intersected in line with prognosis”.
These news do though not indicate Origin Energy a change in strategy with other geothermal activities in Chile and Indonesia.
Source: Climate Spectator
