The operation was undertaken prior to a 20-day open circulation flow test and subsequent closed loop test planned for the end of April.

Geodynamics said the clean-up test boded well for the project.

"Coiled tubing was used to displace kill weight drilling fluid - used to contain the high well pressures - from the well using water, which initiated flow from the main fracture," the company said.

"During this operation the hydraulic connection with Habanero-1 was reconfirmed with good indication of well productivity."

Due for completion at month-end, the open circulation test involves releasing steam at the surface and is designed to demonstrate the resistance of the circulating loop between the Habanero-1 injection well and the Habanero-3 production well.

A successful test here would mark the 'proof-of-concept' and completion of Stage One of the company's business plan.

Geodynamics' partner in the project is farminee Origin Energy.