New wells push revenues from San Jacinto-Tizate geothermal plant
Polaris Infrastructure reports an increase in revenues from its San Jacinto-Tizate geothermal plant, due to the success of its 2015/ 2016 drilling program that pushed efficiency and electricity generation.
In a release on its financial results for the third quarter of 2016, Polaris Infrastructure Inc. report on its operating results and success of its 2015/ 2016 drilling program.
The company has been able to improve the average power generation and revenues from its San Jacinto-Tizate geothermal power plant in Nicaragua. The plant generated 120,358 MWh (net) (an average of 54.6 MW (net)), resulting in revenue of $14.3 million for the Q3 20166, compared to revenue of $12.9 million on generation of 112,210 MWh (net) (an average of 50.8 MW (net)), for the same period in 2015.
The increase in power generation was the result of connecting two new wells to the San Jacinto plant, SJ 9-4 and SJ 6-3, which occurred part-way through the quarter. This increase was partially offset by downtime associated with unit 3 turbine maintenance, which took place in July 2016.
With an adjusted EBITDA of $12 million in Q3 2016, the company increased its financial results by 18% over the same period last year, mainly driven by revenue growth through new wells.
Polaris successfully connected two new wells following its 2015/ 2016 driling program. Started in October 2015, the drilling program was completed on July 21, 2016. The company shared a few highlights, see below.
- Drilling of SJ 9-4 was completed on July 21, 2016, and the well was connected to the plant on August 24, 2016. Current power generation from the well is estimated at 10 MW. We continue closely monitoring the well in order to maximize near-term production while also best integrating into our broader steamfield management strategy.
- The first new production well, SJ 6-3, was completed in late December 2015, and has been undergoing thermal recovery since then. The well was successfully connected to the plant on August 1, 2016, and on average has been contributing approximately 2-3 MW. We anticipate further modest improvements in temperature and pressure, which could result in average contribution approaching 3 MW.
Polaris Infrastructure is a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates the 72MW San Jacinto-Tizate Geothermal project located in Nicaragua (operating at 54.6 MW).
Source: Company release via Stockhouse