BEACH Energy will have the exclusive right to farm-in to the geothermal exploration tenements operated by Geodynamics in Innamincka, South Australia, under a newly signed agreement.
Beach will maintain that right for an 18 month period, during which Geodynamics will investigate the use of geothermal resources to supply heat and/or power to potential gas developments in the area.
Geodynamics will also look at the management of carbon dioxide in the natural gas production process through the use of carbon dioxide as a heat transfer fluid in the geothermal process.
Beach will contribute A$200,000 towards the cost of the research program, with this amount fully refundable if a farm-in agreement is not agreed between the companies by the end of the exclusivity period.
Geodynamics sold its Habanero logistics and operational support base to Beach for $1.5 million earlier this year, after it completed its plug and abandon program of the Celsius 1, Habanero 2 and Habanero 3 wells.
Development of the geothermal resource at Habanero had demonstrated potentially significant energy efficiency improvements in pilot testing with a future gas development in the Beach-operated Nappamerri Trough, company chief executive Geoff Ward said.
“The research project will examine some new and innovative ways of achieving these benefits building on the work undertaken during the Pilot Plant trial and drilling program at Habanero,” he said.
The test is expected to take about 12 months to complete.