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RNE - ReNu Energy

Discussion in 'Stocks Q-Z' started by constable, Nov 3, 2006.

  1. constable

    constable

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    Could be a possible buying opp. Did drop to 70 cents in july tho. Recent drop quite sharp. Great medium term i think anyone else please :)
     
  2. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: gdy

    I don't think the sellers have finished with this one yet. It might be a good shorting opportunity at the moment though.

    :2twocents
     
  3. Ranger

    Ranger

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    Re: gdy

    I have held this stock for a few months, and it has been flucuating between 70c and $1.20 but their seems to be potential for it.
     
  4. chops_a_must

    chops_a_must Printing My Own Money

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    Re: GDY - Geodynamics Limited

    This has broken out somewhat from its trading range today. Possibly because of what Tim Flannery said last night on Lateline.

    "TONY JONES: Let's go to the radical solution. You've actually advocated for Australia closing down all coal-fired power stations and going to power rationing, creating a joint national scheme, like the Snowy Mountain scheme, to exploit geothermal power from the South Australia Cooper Basin. How would it work?

    PROFESSOR TIM FLANNERY: I haven't talked about power rationing. I think that we do need to ultimately close down those coal-fired power plants but first we need to build the bridge to the new energy future. There are hot rocks in South Australia that potentially have enough embedded energy in them to run Australia's economy for the best part of a century. They are not being fully exploited yet but the technology to extract that energy and turn it into electricity is relatively straightforward.

    TONY JONES: Is it there? I mean, is it there at the time? I know there are pilot plants in the Cooper Basin. How much of an effort, a national effort, would it take to take that further as you pointed out, and make a grid starting from there, spreading out to the rest of the country?

    PROFESSOR TIM FLANNERY: If we started off on a raw footing, so this is the big investment in our future, the big Snowy Mountain scheme, to secure our future as the world’s mineral processor and mineral extraction area, I think we could probably do a very large amount of that within a decade. We've got the north-south railway now. We simply need to build on that, we need to reorient our grid, but first and foremost, we need to prove up these technologies. So we need a large investment in both solar-thermal and geothermal technologies, because both have huge potential in this area to produce abundant cheap electricity and they don't have the sort of problem we have with nuclear. Part of the issue with nuclear is it is so politically contentious and perhaps that's why it's on the agenda, but it also makes it more difficult to use in Australia to move forward, and frankly, I think there are better options."

    http://www.abc.net.au/lateline/content/2006/s1842715.htm

    Or watch/ listen to the interview here:
    http://www.abc.net.au/lateline/
     
  5. KIWIKARLOS

    KIWIKARLOS

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    Re: GDY - Geodynamics Limited

    These guys have had so many setbacks whilst trying to drill their pilot wells it is extremely likely they will need to do more share placements to raise capital, particularily since they mised out on recent gov grants which were handed to similar projects elsewhere.

    I like the tech and the potential but not the investment atm.
     
  6. chops_a_must

    chops_a_must Printing My Own Money

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    Re: GDY - Geodynamics Limited

    What are the other projects that got funding ahead of the projects that GDY operate?
     
  7. YChromozome

    YChromozome

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    Re: GDY - Geodynamics Limited

    LOL, excellent point - Petratherm (ASX:pTR) got a grant to explore HDR in China last year. The only reason why they forgot to disclose how much the grant was worth to the market was the fact that it was worth an entire $50,000. It probably cost that much to jump through the hoops to write the grant. Yesterday they announced they would explore Spain. I did wonder if they wanted to finish one project first, or if they want to spread and burn money thinly over lots of projects.

    In comparison, GDY first got a grant of $5 million for Habanero 1. They later asked and was awarded an extra $1.5 million "top up". In late 2005, GDY was also awarded a $5 million REDI Grant.

    The "other companies" also don't have the big name backing such as Origin Energy and Woodside Petroleum on the shareholders registry.

    Talking of the GDY shareholder's registry, I believe Tim Flanery's name is there too.
     
  8. YChromozome

    YChromozome

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    Re: GDY - Geodynamics Limited

    True, but as stated in the last shareholder information briefing, they are addressing these issues. You have to remember the set backs have been in tasked performed every day in the mining and gas industry, and by companies that service these industries, not in the geothermal technology itself.

    However if you were to make a comparison to the other players in Australia, name a competitor that has actually drilled two wells to the finished depth, proven the temperature gradient and finial temperature, performed hydraulic stimulation, proven the reservoir doesn't leak and performed a circulation test, even though a plug partly blocked one well?

    They certainly have a lot more runs on the board than any other company, and who is to say a competitor won't stumble on any of the above. What would happen if a reservoir leaked?
     
  9. reece55

    reece55

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    Re: GDY - Geodynamics Limited

    Guys
    I wouldn't be investing my hard earned in good ole GDY!

    The problem with them is:

    1. They invested almost $90 Mil in their hole they were developing and lost it all. The Government in fact is very annoyed that they invested the REDI money in the entity in the first place, so I wouldn't be expecting another grant from the Government; and

    2. Even if Habanero (now no 3!) proves to have the right geological mix to create the power, my understanding is that it would cost a mint to transport to the customer. Whilst their presentations always gloss over how wonderful a test plant would be, I have never seen them relay how they intend on supplying it to the customer - why, because it just isn't feasible!

    They have $4.7 Mil in the bank and are burning it up rapidly/ I would have thought they would have a very hard time raising money. However, the share price jump would indicate that perhaps the brokers are able to give them a placement! The only thing holding them up here is the names on the registry - ORG and WPL. If not for that, this Company would have been finished, period. I mean the Company is capped at $100 Mil and is actually now well behind say Petratherm (capped at significantly less with a project that looks like getting up).

    Cheers
     
  10. LifeisShort

    LifeisShort

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    Re: GDY - Geodynamics Limited

    Perhaps all is needed is someone competent in drilling techniques instead of burning money techniques and cocking up everything they touch. I wouldn't trust them with my fish as they'd probably turn my pond into a natural disaster area requiring a 100m government grant for clean up. They need to visit a playground and practice drilling with tonka trucks in the sandpit. I didn't think it was rocket science to drill holes but then again if it is then they are under qualified.
     
  11. YChromozome

    YChromozome

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    Re: GDY - Geodynamics Limited

    Actually, the said $90 million went into two 'holes' (aka Wells) and the hydraulic stimulation of the heat exchanger. While one well may be lost, the company still retains the other well, the hydraulically stimulated heat exchanger and greatly reduced risk is actually proving the exchanger.

    They don't need to start from scratch. They just need to drill one more well into the heat exchanger.

    The REDI grant was not the first, but actually the last grant. It was awarded for the development of Kalina Cycle.

    I'm sure under the skin the Howard Government is annoyed at any money invested in renewable energy rather than what it sees as job and GDP creating coal technologies. I doubt they actually care where the money for renewables goes, they just know they must spray a little money around a couple of renewable companies to win a couple of votes and keep the public believing they are doing something. [ . . while they continue to work on Geosequestration]

    The well is just a means to bring heated water to the surface. The heat exchanger transfers heat to the water and the binary power plant on the surface "creates the power", or really transfers the power. At the end of the day, its just a well. All it has to do is intercept the heat exchanger. The geological mix is in the horizontally fractured granite, something that was proven by GDY a couple years back during hydraulic stimulation.

    My understanding GDY has had reports from a variety of sources over the years. Possibly the first was the basis of the IPO prospectus, the most recent has been work done by Transgrid who operate 12,000km of HV networks in NSW. They indicate the HVDC network (similar to Murraylink inter connector between SA and VIC and the recently completed Basslink between the mainland and TAS) would add about $5 to $10 MW/h to the costs.

    Transgrid would hope they are correct, they also feature on that shareholder's register and have money to lose if you are correct and simply power transmission at those distances is not feasible!
     
  12. YChromozome

    YChromozome

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    Re: GDY - Geodynamics Limited

    Actually that was Lapindo Brantas and part stakeholder, Santos (ASX:STO), in Java.

    But don't worry, Century Resources (Who drilled Hab 2) was called in to halt the flow of the mud. I believe this has failed and the Indonesian government intend to put some concrete balls down the hole to stem the flow. But it wont be a government grant, I believe Lapindo will be given a 30 day account of which Santos will have a share.

    Look on the bright side, Century Resources will have some experience should GDY get into this trouble and there won't be 15,000 people homeless, the relocation of a major highway, rail link and gas pipeline at the Innamincka site to worry about.

    But it does prove things do go wrong, even to profitable and experienced oil and gas operators. Geodynamic's one failed well is insignificant to something like the current problem in Java.

    The retrieval of the plug that fell to the bottom of Habanero 2 was the responsibly of Halliburton which is a multinational company operating in 120 countries providing services for oil and gas exploration. The side track operations, I believe was contracted to Century Resources a division of Downer EDI Limited's oil and gas division.

    Both companies service the oil and gas industry each day, but it would appear things do go wrong. I wouldn't insult either and say they need to practice drilling with tonka trucks in the sandpit!
     
  13. LifeisShort

    LifeisShort

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    Re: GDY - Geodynamics Limited

    Did I mention that I like what they are trying to achieve? Unfortunately there is no confidence at present in them......until they show some results ort put out some positive news (governments grants excluded).
     
  14. Smurf1976

    Smurf1976

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    Re: GDY - Geodynamics Limited

    Technically it ts feasible, no question there. Economics is the issue and it basically comes down to the scale of generation and required reliability of transmission (which in turn is largely a function of scale).

    For the record, there is also a HVDC link between NSW and Queensland. That is the smaller of the two NSW - Qld interconnectors just as Murraylink is the smaller of the two Vic - SA interconnectors.

    Build 5MW and all you need is some local load to take the power.

    Build 50MW and you need a grid connection but it doesn't really matter how reliably it's done or where it joins the existing grid. If your plant goes offline then at that level there aren't really any consequences for the grid as a whole.

    Make it 500MW and there's no avoiding the need for proper connection to the EHV network. And either you run the line to an existing point of large capacity or there is no option other than to upgrade capacity on the existing network. A single 500MW source which can trip all at once wouldn't be acceptable for connection in SA but would be OK in Qld / NSW / Vic.

    Build it up to 5000MW and it becomes a major centre of generation with all the transmission infrastructure that involves. You wouldn't realistically want to feed all of that into just one state unless you're also going to do a major upgrade of interconnectors between the states. At this level the whole thing gets very complex in terms of what is required since if anything goes wrong then it could easily bring down the entire grid. At this level we're necessarily talking about multiple lines from multiple generating units, preferably without all of those lines running parallel to each other. :2twocents
     
  15. TheRage

    TheRage

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    Re: GDY - Geodynamics Limited

    Hi does anyone have any idea about the trading halt on this share. The ASX announcement mentioned something about the USA rig. Is the company looking to issue more rights to pay for the rig?
     
  16. yogi-in-oz

    yogi-in-oz

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    Re: GDY - Geodynamics Limited

    :)

    Hi folks,

    GDY ..... currently trading in "no man's land" on the
    chart, but expect some very significant news, around
    19-22062007, as 2 major and positive time cycles
    come out to play ..... :)

    happy days

    paul

    :)

    =====
     
  17. Spaghetti

    Spaghetti

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    Re: GDY - Geodynamics Limited

    I have bought into GDY for a long term hold. I sold GRK as I felt it was undervalued for the sector until now. Perhaps it has more room to grow the price but am happy to take significant profit and invest in the big boy of Geothermal energy.

    Thanks for all your information Ychromosone, very well researched.
     
  18. Sprinter79

    Sprinter79

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    Re: GDY - Geodynamics Limited

    I was wondering if anyone was going to mention this one. Up all but 10% on the day with moderate volume. It came up on my scan as a buy at 1.21, but didn't have any spare money (ah, the life of a public servant) hahaha
     
  19. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    Re: GDY - Geodynamics Limited

    I was not expecting the solid rise today and sold @ $1.285 ,which is mortifying(trading today without a screen in front of you has its limits).......besides selling I am keen to buy back into this share ,but plenty of time as the rig sailing from Texas will not arrive tomorrow by DHL....but when it does arrive in months to come,I would not be suprised if this share will rise like the rig itself. Whether you buy @1.21 or more the share has its merits if you follow the news.
     
  20. stormbringer

    stormbringer

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    Re: GDY - Geodynamics Limited

    GDY will be the first of it's kind to provide a jorc compliant geothermal resource. Petratherm haven’t even drilled their first hole yet, lol, so when they do, maybe I'll take a look at them, seriously. We all know the obstacles this company has overcome, and not to say there won't be more difficulties in the future, but I have to keep reminding myself what is at stake here. I'm not talking about the obvious, clean energy, which is what initially drew me to the company, always thinking green, I'm talking about the jorc compliant reserve, and when all the info on it's actual size and potential are released to the market, where the sp is headed. Based on their current "estimates" of 50 billion barrels of oil equivalent.............well........you do the math and tell me where u think the sp will top :)
    I note a few people talking about the costs associated in getting it to the grid, due to their location. Well, I think once introduce, the carbon trading scheme is going to take care of that. All of this subject matter is highly speculative of course.
    I love the idea of geothermal energy, and will probably invest in several companies over the coming yrs, but for now, GDY's the one to be on, in my humble opinion. The upside potential is huge :)
    I do own a small parcel of shares in GDY, but u guy's probably worked that out already.
     
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