CONTROLING ENHANCED GEOTHERMAL’S SEISMIC ISSUE

Major stimulation completed at Habanero 4

10 December 2012 (Geodynamics Ltd)

“Geodynamics Limited…has successfully carried out a major stimulation of the Habanero 4 well over a 14 day period from 17 to 30 November 2012…During the stimulation and the subsequent pressure decline after the stimulation ended, Geodynamics’ seismic monitoring network detected more than 24,000 micro-seismic events…extending up to 1,500 metres away from the well.

“The data from the stimulation is currently being processed and analysed to further understand the behaviour of the fracture system at Habanero. The reservoir will now be allowed to re-establish equilibrium conditions before conducting a third open flow test estimated to be carried out in February 2013…”

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“Geothermal energy produced from hot fractured rocks, also known as Engineered or Enhanced Geothermal Systems (EGS), is generated by special high heat producing granites located 3km or more below the Earth's surface. The heat inside these granites is trapped by overlying rocks which act as an insulating blanket…

“…The heat is extracted from these granites by pumping water through fractures in the granite and bringing the hot water to surface. Geodynamics believes that energy produced using EGS technology is capable of generating base-load power at a cost that will be very competitive with other energy sources (both low carbon and otherwise).”

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