Geothermal exploration and development company Geodynamics Limited
(ASX:GDY) has signed an exclusivity deal with Beach Energy Limited
(ASX:BPT).
The agreement is in regards to Geodynamics geothermal exploration tenements located at Innamincka in South Australia.
Under the terms Geodynamics has granted Beach Energy an exclusive right to negotiate a farm-in agreement to geothermal licences for up to an 18 month period.
During this period Geodynamics will undertake a research program to investigate the use of geothermal resources to supply heat or power to potential gas developments in the area.
Beach Energy will contribute $200,000 to the cost of the research program with the amount fully refundable if a farm-in agreement is not tied up before the end of the exclusivity period.
Geodynamics CEO Geoff Ward says the announcement is an important first step in strengthening the company’s engagement with Beach as a potential customer and partner.
Geodynamics reported a net loss of $8.2 million in the first half of the 2014 financial year.
