“Dr de Graaf has stated that he remains fully convinced of the future of the Cooper Basin HFR geothermal project,” the company said.

“He will also remain available to support Geodynamics in any way he can.”

Dr Adrian Williams has been appointed as interim CEO. The company said Williams has a strong track record with energy and technology, including the development of large-scale energy projects in Australia and overseas and was recently chief of CSIRO’s Energy Technology division.

He has been actively involved with hot rock geothermal energy for more than eight years and has had a close relationship with Geodynamics since its listing in 2002.

Eleven days ago, ongoing problems forced Geodynamics to abandon current drilling operations at its Habanero-2 well in the Cooper Basin.

The well bore has been blocked since late 2004 when Geodynamics lost 245m of drill string at a depth of 4343m as it was preparing to conduct the final drill bit run.

“On the basis of the slow and costly progress made to date and taking into account the remaining risks involved in completing the side track with the current onsite equipment, it was reluctantly decided to stop the drilling operations,” Geodynamics said on June 29.

“Geodynamics has further decided to restore the connection with the heat exchanger using a conventional drilling rig. Geodynamics has recently obtained an option on a suitable rig, which will become available in the last quarter of this calendar year.”

The company is considering drilling another side track from near the bottom of the casing in Habanero-2, starting drilling at a depth of about 3750m.