The $NZ3.7 million well was originally drilled as BR-50 in March-April last year but suspended due to technical problems. The sidetrack started last month and was the first geothermal well drilled in New Zealand using imported aerated drilling equipment.
The BR-50A was to have tapped into a deep geothermal reservoir to enhance output from the Ohaaki station, which has been producing at less than the design 104MW maximum capacity.
Company chief executive Steve Barrett said Contact, which had other deep wells at Ohaaki that had been reliably producing steam for a number of years, would be reviewing the reasons for the failure of BR-50A.
