In an operational update, Geothermal Resources said yesterday that the shallow wells were designed to test the geothermal gradient on its Frome project.

The wells are being drilled to depths of 200-300 metres in the area between drillholes Frome-3 and Frome-9, both of which returned abnormally high bottom of hole temperatures from downhole logging completed last year.

Information from this program will help the company identify the best place to drill a well of at least 1000 metres, expected in the first half of this year.

Depending on results, this will precede a hole at least 3km deep to be drilled into the granite geothermal reservoir later in the year.

Meanwhile, Geodynamics says it plans to undertake deeper drilling to further define the geothermal potential of its Hunter Valley tenements.

The decision follows the confirmation of good quality temperature gradients from temperature logging of shallow wells drilled in the area.

Between December and January, Geodynamics completed and temperature logged the third in a series of shallow wells to further understand the quality of geothermal resources in its Bulga tenement (EL5886). The first two wells were drilled and logged in 2005.

“The results of the temperature logging were positive with temperature gradients in coal measures in the range of 50-58 degrees Celsius per kilometre, comparable with temperature gradients achieved in the Cooper Basin,” Geodynamics said.

To further progress the Hunter Valley geothermal project, the company has applied for a $100 million Renewable Energy Development Initiative grant from the Federal Government.