The company said Jolokia-1 has reached a depth of 3425m and is drilling through the Patchawarra Formation.

Drilling rates are between 1-2m per hour, with three drill bit changes in the past two weeks, the company said.

According to Geodynamics, the Patchawarra Formation is about 375m thick and is the hardest section to drill through.

"There remains around 635 metres to complete the current 311 millimetre section, which will then be cased and cemented before the final 216 millimetre diameter open hole section in the granite is drilled," the company said.

The well will be drilled to its target depth of 4250m.

Jolokia-1 is about 9km from the Habanero l and is targeting fractured granites at a similar depth known to be 10C hotter than the Habanero wells.

Meanwhile, contractors are installing the microseismic monitoring network for the Jolokia hydraulic stimulation, scheduled for after completion of the well.

Geodynamics said five new stations are being installed in new 100m bores, up to 5km from Jolokia-1 and will detect acoustic emissions during the stimulation process.

The signals are digitised at the surface and sent by wireless network back to the Jolokia 1 central station, the company said.

In other news, the company expects to begin the closed loop test at Habanero-1 within three weeks.

The test was scheduled to start in mid May but was delayed due to slippages in the delivery of major components from overseas.

Geodynamics said most plant items for the test have been delivered onsite and are being installed.

The air-cooled heat exchanger is in place and installation of the electrical switch room and control systems is underway, the company said.

All South Australian Government approvals related to completion and the flow test program have also been obtained.

The closed loop test with injection of chemical tracers will run for six weeks and, if successful, will complete the company's proof of concept plan.