In a statement yesterday, chief executive Adrian Williams said the company was having trouble securing a rig to drill the Habanero-3 well in the middle of the year.

“There is not a rig currently in Australia that is capable of drilling commercial scale geothermal wells such as Habanero-3, and the record level of drilling activity globally is making securing a rig a challenge,” he said.

“We have been pursuing the conventional engagement of a drilling contractor and the opportunity exists, but the challenge is to meet our target timeline for Habanero-3.

“Given our immediate and future drilling program, and an outlook that sees the availability of drilling contractors and rigs remaining very tight for some years, we have been exploring the option of acquiring our own rig.”

If it decides to buy the rig, Geodynamics says it has a “highly capable” contractor available that would manage, crew and operate the drilling of Habanero-3 and potentially several more wells.

The company has short-listed and is inspecting the latest technology rigs available. It expects to make a decision in the next few weeks.

“The acquisition of a new generation rig will provide Geodynamics with the most efficient rig in Australia and guarantee the company access to a rig to meet its current and longer term drilling program,” Williams said.

If successful, Habanero-3 would become Geodynamics’ first commercial-scale well.

Firstly, the well would complete a circulation test and the proving of geothermal reserves to complete Stage 1 of the company’s business plan. Secondly, the well would then be connected into Australia’s first commercial scale, 40MW geothermal power generation project.

Geodynamics has awarded tenders for such critical long-lead items as the well casing, the wellhead and the Christmas tree.

Detailed design and well-planning being undertaken by Geodynamics’ own staff, with the support of consultants such as Peak Group, is on track, the company said.