launch of hdr geothermal development in australia

Have been looking at this one since listing, looks like it's all go from here. Interesting price action last week after getting the go ahead.

Floated recently at 50 cents with a low of 43.

19m shares on issue. Woodside hold 30% of the company in escrow, with Santos having already signed up for any power that is generated if it all comes off.

The figures are astounding, don't know much about this type of technology.

Below are 2 recent announcements that give an idea of what it's all about. I got a few for a punt anyway.
Comments appreciated.


GEODYNAMICS LIMITED 2002-09-11 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
* First listed company to acquire geothermal energy licences under
pioneering legislation in South Australia.

* Resource potential with heat equivalent to 50 billion barrels of
oil.

* HDR geothermal electricity can operate on 24/7 basis with zero
emissions of greenhouse gases.

* Qualifies for significant financial incentives under Renewable
Energy Act.

* Mobilisation to site for field work within 2 months.

* Approximately 800 shareholders following IPO.

HDR GEOTHERMAL ELECTRICITY

Geodynamics Limited (ASX code: GDY) is now preparing Stage One of its
hot dry rock (HDR) geothermal electricity project. This is the first
step of Geodynamics' overall vision of becoming the largest renewable
electricity producer in Australia.

The projected all-up costs of producing HDR geothermal electricity
from Geodynamics' high temperature tenements is estimated to be lower
than hydro, wind, biomass or solar alternatives. In addition, unlike
many other renewable sources, HDR electricity can operate on a 24
hour per day, 7 day per week basis and therefore provide electricity
to higher revenue base-load customers.

Geodynamics is taking advantage of three factors that have only come
together recently:

1. IDENTIFICATION OF THE WORLD CLASS ENERGY RESOURCES IN THE COOPER
BASIN.

The core resource for HDR geothermal energy is naturally occurring
heat within buried granitic rocks. Recovery of electricity from HDR
geothermal sources is effectively a heat transfer process with zero
emissions, unlike fossil fuels such as oil, coal or gas that rely on
the burning of carbon to liberate heat.

Oil and gas drilling in the Cooper Basin over the past thirty years
discovered Geodynamics' HDR energy resource. The availability of
information from five wells and gravity and seismic data has provided
Geodynamics with approximately $20 million of data on the granite and
its temperature. The drilling located massive granite rocks at depths
of approximately 3,500 metres along with extremely high temperatures
of 232 to 245 degrees Celsius near the top of the granite. These
temperatures were noted then as amongst the highest in the world at
this depth. Even higher temperatures will be experienced deeper in
the granite.

The Australian energy market has only just begun to realise the scale
and potential environmental advantages of this energy source.

2. TITLE TO RESOURCE OWNED BY GEODYNAMICS

In a pioneering move to accelerate the development of the Cooper
Basin HDR resource, the South Australian Government offered
Geothermal Exploration Licences for the first time in early 2001.
Geodynamics was successful in acquiring one block (GEL 98) in that
competitive tender. Since then, Geodynamics has also acquired the
adjacent block (GEL 97).

These two tenements cover an area of 985 square kilometres. The
contained heat (thermal) energy is enormous. Geodynamics estimates
that the stored thermal energy within an accessible 1000 m thick slab
of granite within GEL's 97 and 98 is equivalent to 50 billion barrels
of oil. By comparison, the proved oil reserves in the USA are
estimated at approximately 30 billion barrels, and for Australia, 3
billion barrels.

To put this into perspective, this amount of thermal energy could,
when converted into electricity, supply 100% of Australia's
electricity needs for 75 years.

3. NEW FINANCIAL INCENTIVES FOR RENEWABLE ENERGY

The Australian Federal Government, like many other Governments in
developed countries is providing financial incentives for greenhouse
gas friendly sources of electricity. HDR geothermal energy meets the
requirements of the Renewable Energy (Electricity) Act 2000. The
financial incentives available under this Act have the potential to
provide Geodynamics with an effective electricity selling price of
double the current wholesale rate of around $35 to $40 per MWh. This
incentive has a strongly positive effect on the profitability of
generating HDR electricity. It also covers the cost of high voltage
power transmission from the Cooper Basin to the national grid
(estimated at $5 to $10 per MWh) several times over.

In addition, Geodynamics is taking advantage of the rapidly
increasing maturity of overseas HDR Development Programs. Companies,
Governments and universities have invested almost $1000 million on
HDR developments over the past few decades. To date, the lower
temperatures and complex volcanic geology at available overseas
locations compared with Geodynamics project has hindered full
commercial exploitation. As an illustration of the attractiveness of
Geodynamics project, the Cooper Basin has a granite temperature of
250 degrees C or more at 4,000 metres depth compared with the
European Union HDR project in France of only 170 degrees C.

SHARE HOLDING OF GEODYNAMICS

Following the IPO, Geodynamics has approximately 800 shareholders.
The five largest shareholders are:

Metasource 31.6%
CVC REEF Limited 8.4%
The Australian National University 7.9%
Commonwealth Custodial Services 3.0%
RBC Global Services Australia 1.5%

Metasource Pty Ltd, the wholly owned sustainable energy subsidiary of
Woodside Petroleum, has the right to purchase certain environmental
credits from Geodynamics once large-scale electricity production
commences, so long as it continuously holds its initial shareholding.

Together with normal escrow provisions on founder and certainseed
capitalist shareholdings, this means that approximately 44% of
Geodynamics shares are either escrowed or linked to future benefits.

At listing, Geodynamics will have 33,046,746 million shares on issue,
of which 28,909,251 will be quoted. In addition, there are 1.24
million unlisted options. Geodynamics will have a market
capitalisation of $16.5 million at the issue price of $0.50 per
share.

DEVELOPMENT UNDERWAY

The process of testing and developing the HDR resource in the Cooper
Basin will commence immediately. The first step is drilling of
Geodynamics #1 well, located approximately 8 km south of Innamincka.
The drilling contract is now being finalised with mobilisation
planned within 2 months.

Geodynamics is adding a small number of specialist staff, including
secondees from Woodside Petroleum and CSIRO, to manage its
operations.

FINANCIALS

AusIndustry has confirmed that the conditions for Geodynamics' $5
million R&D START grant have been met. Together with the $11.5
million raised from the IPO, this grant provides Geodynamics with
gross funding of up to $16.5 million, equivalent to 50 cents per
share on listing.



B de Graaf
MANAGING DIRECTOR
Contact 07 3876 8955 or 0417 767 277



GEODYNAMICS LIMITED 2002-12-16 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
Geodynamics is pleased to announce that:

* The final permitting process for the first geothermal well -
Habanero 1 - is completed and drilling activities can now proceed;

* Documentation for drawdown of AusIndustry's $5M R&D Start grant is
finalized.

The Company is now well placed to realize the extraordinary potential
of the known Hot Dry Rock geothermal resource in the Cooper Basin,
the hottest spot on Earth outside volcanic centres, for the
generation of emission-free electricity. Funds required to complete
the "Proof of Concept" part of Geodynamics' business plan are in
place.

HABANERO 1

Habanero 1 (named after the world's hottest chilli pepper) will be
drilled to a depth of 4500 to 4900m (14800 - 16000 ft). Century
Resources (a subsidiary of the Downer EDI group) has been awarded the
drilling contract. The cost of this historic and deep geothermal well
is estimated at approximately $5.4 million, excluding contingencies.
The drilling of this well is estimated to take ten weeks to complete.

In finalizing the well design, Geodynamics has had the benefit of
access to Woodside Petroleum's "state of the art" drilling software
as well as a subsequent peer review with participation from Woodside
Petroleum, Santos, CSIRO, PIRSA (Primary Industry and Resources,
South Australia) and the geothermal division of Century Resources and
other contractors.

Access to the existing deep gas exploration well, McLeod 1, (500m
away from Habanero 1) has been formalised with Santos. A workover
programme to prepare this well for use as an observation well and
also for water supply, is scheduled to start on 11 January 2003.

In anticipation of the above, pad preparation has been completed and
rig mobilization can now proceed as expenditure is incurred. Pending
the delivery of 7300m of specialized steel casing, the spudding date
is now scheduled for late January to early February 2003.

$5M R&D START GRANT

All formal documentation with AusIndustry has been completed and
drawdown of these committed funds can now proceed. The R&D Start
grant will cover approximately 30% of the total estimated costs of
Stage One ("Proof of Concept") of our business plan.


B de Graaf
MANAGING DIRECTOR

For further information please contact Bertus de Graaf at 07 3721
7500. Please also check our website at www.geodynamics.com.au