Spudding of the Jolokia-1 well, located 9km from the Habanero project, has been delayed due to difficulties re-commissioning the top drive system of the Lightning rig.

"Geodynamics is working to resolve the problems with the equipment manufacturer, LeTourneau and with the assistance of our lead contractor Easternwell," Geodynamics said.

"It is currently anticipated that these equipment issues should be rectified by Wednesday, March 19."

Jolokia-1 is targeting fractured granites at a similar depth known to be 10C hotter than the Habanero wells.

Back at Habanero, Geodynamics said the Habanero-3 well has cleaned up rapidly from drilling mud and flowing 208C water at a stabilised rate.

The well is sustaining production of 18kg of water per second, at a flowing pressure of 3990psi through a 12.5mm fixed choke.

Productivity is 400% higher than that from the highest rate achieved in Habanero-2 in 2005, where lost down-hole equipment restricted flow and eventually blocked off from the main fracture zone.

"During production and shut-in of Habanero-3, the monitored well head pressure at Habanero-1 responded as expected, indicating good communication between the wells at 4250 metres depth," Geodynamics said.

Flow-testing will be followed by combined flow from Habanero-3 and re-injection into Habanero-1.