Geothermal stake: for origin
Origin farms into geothermal prospects
Australia’s Origin Energy has agreed to farm into a 30% share of a number of Cooper basin geothermal tenements operated by Geodynamics.
Alongside its 30% share of on-going project expenditure, Origin will contribute up to A$105.6 million towards all project cash costs, Geodynamics said.
Origin will also pay a further A$9.6 million should Geodynamics complete its stage one ‘proof of concept’ phase by 31 March 2008 within a defined budget.
The funds to be provided by Origin will be used to drill the next three to four wells in the area, focused on upgrading the known resource to proven reserves, Geodynamics said.
The South Australia tenements and drilling rig will be placed into a joint venture structure, with Geodynamics acting as operator with a 70% participating interest.
Origin has also agreed to provide technical support to assist in project development.
Origin will retain its current 10% equity interest in Geodynamics.