Geodynamics, which aims to develop renewable geothermal energy from hot fractured rocks, said clean-up flow and commissioning tests were completed “with great success”, with the Habanero-2 well producing up to 10 megawatts of thermal power during the test.

The news sparked a surge in the share price which closed at $1.81 yesterday, up 35 cents or 24%. At one point the share price hit $1.90.

Geodynamics said its Habanero-2 well flowed for 40 hours continuously at a controlled flow rate of up to 15 kg/sec.

The hot rocks explorer said massive amounts of steam and hot brine were released from the overpressured reservoir, with noise levels approaching 120 decibels, similar to that of a jet engine.

Geothermal brine temperatures reached 198.5C, in line with modelling studies, and higher temperatures were now expected during the two-week diagnostic flow test, scheduled to start early next week.

The companies Cooper Basin HDR Geothermal Project is designed to unlock the energy potential stored in a massive 1000 square kilometres of highly overpressured target hot granites.

The company claims Australia’s proven HDR energy potential is equivalent to 17 times the nation’s oil reserves and the Cooper Basin could generate thousands of megawatts of zero-emission electricity.