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Geodynamics has been trying to prove its concept of power generation from hot rocks for close to a decade now, entering into a joint venture with Origin in 2007 and suffering a major setback in 2009 due to a well blowout.
Its ongoing Habanero 4 well is the first major step in an appraisal program designed to develop a commercial-scale energy project at the site within the next two years.
However the total estimated cost of drilling the well and associated stimulation and open flow test activities has risen to $50 million - up by $1.5 million on the maximum agreed expenditure of $48.5 million with Origin.
Delays due to the complex cementing operation involved have led to higher costs and it is now expected to be completed by the end of this month. (Geothermics update - PDF)
Origin pulled the plug on its contribution because the well did not achieve interim cost and technical milestones previously agreed to by both project partners.