Geodynamics shares start trade up one cent
Date: 13-Sep-02
Country: AUSTRALIA
At listing, Geodynamics had 28.9 million shares on issue giving the company a market capitalisation of A$14.5 million.
The company raised A$11.5 million through an initial public offering and also announced it will receive a A$5 million research and development start grant from the Australian government.
Managing Director Bertus de Graaf said the company would begin the A$16 million first stage of the Hot Dry Rock (HDR) geothermal energy programme by drilling the first well during the next couple of months.
HDR geothermal energy involves circulating water through extremely hot granite between 3-5 km beneath the earth's surface, before drawing it out and using it to generate power.
"The Australian energy market has only just begun to realise the scale and potential environmental advantages of this energy source," de Graaf said in a statement.
Geodynamics estimates the stored thermal energy accessible in a 1,000 metre thick slab of granite in its Geothermal Exploration Licence areas is equal to 50 billion barrels of oil, compared with Australia's proven oil reserves of three billion barrels.
The largest shareholder in the company is Woodside Petroleum , which purchased a 31.6 percent stake through its renewable energy unit Metasource.
Santos Ltd has signed a memorandum of understanding for the supply of 13 megawatts of power to its Moomba production plant in South Australia from Geodynamics' demonstration power plant, due to be operating by mid-2005.