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The company's hot rock geothermal energy project, designed to produce large amounts of emissions-free power, was considered by the Government to be premature at the time of its decision, according to Geodynamics.
The Government noted that Geodynamics had not yet completed Stage 1, which had been delayed due to problems encountered in the Habanero-2 well.
The company suffered a setback in June when a drill stem became stuck at a depth of 13,753 feet (4192m).
Geodynamics now plans to drill the Habanero-3 well, which will allow completion of Stage 1 and is expected to be the first production well in the HotRock40 project.
The company said it had completed the design of this well and was calling for tenders for casing.
A high performance drilling rig is actively being sourced from overseas.
Geodynamics will meet with the Government in mid-November for feedback on its proposal, and details on another round of LETDF funding are also anticipated.
