Geodynamics has installed and successfully tested the well head and released the drilling rig.

A coiled tubing unit (CTU) for displacing the well from drill mud to water is expected to arrive on site by 15 January. Once the displacement has been completed, Habanero-2 will be handed over to Geodynamics’ Reservoir Testing team.

Following the completion of an initial well logging program, the testing team will carry out a flow test, scheduled to commence in the first week of February 2005.

Geodynamics says that all indications are that Habanero -2 intersected the previously developed underground heat exchanger with hydraulic connection between Habanero-1 and Habanero -2 established during drilling.