Polaris Infrastructure commences drilling on new wells for San Jacinto project
Polaris Infrastructure reports on start of drilling of new production wells for its San Jacinto geothermal project and ongoing discussions on financing for its Casita-San Cristobal project in Nicaragua.
As part of a general update, Polaris Infrastructure reports on its San Jacinto Drilling Campaign and ongoing financing discussions for its Casita geothermal project, both in Nicaragua.
On October 12, 2015, Polaris Infrastructure’s wholly owned subsidiary, Polaris Energy Nicaragua, S.A., successfully commenced drilling the first of three new production wells for the San Jacinto project. We anticipate drilling for the first of these three wells, SJ 6-3, to be complete in early December 2015, and to have a preliminary view with respect to permeability and geophysics around that date. We will proceed at that time with spudding well SJ 14-1 and the balance of the drilling and workover program for 2015/2016. Upon completion of drilling well SJ 6-3, there will be an approximately 30 day heating-up period, after which we will have thermal recovery and move to production testing in early January 2016.
The company also announces that its 95% owned subsidiary, Cerro Colorado Power, S.A., has entered into discussions with The World Bank Group with respect to financing for purposes of completing an initial drilling program at the Casita-San Cristobal project. These funds are expected to fall under the World Bank’s $115 million Nicaragua Geothermal Resource Risk Mitigation program. We are now in an extensive due diligence process with the World Bank and expect to have more clarity on specific timelines early in 2016. To the extent we are able to close on a financing, it would enable the Company to pursue a drilling campaign at the Casita-San Cristobal project without requiring cash flow from our San Jacinto project.
Source: Company release