Polaris Infrastructure to continue drilling at San Jacinto geothermal plant in Nicaragua

Polaris Infrastructure to continue drilling at San Jacinto geothermal plant in Nicaragua San Jacinto power plant (source: Ram Power)
Alexander Richter 9 Nov 2017

Geothermal operator and developer Polaris Infrastructure is to continue drilling of production wells at its San Jacinto geothermal power plant in Nicaragua, as part of further expansion of production from the field.

In the release of its third quarter results for 2017, Polaris Infrastructure announces updates on its work on the San Jacinto-Tizate geothermal plant in Nicaragua.

Successful completion of new production well, SJ 12-4: Drilling of the second new production well as part of the 2017 San Jacinto drilling program, SJ 12-4, was completed on November 1, 2017. As contemplated in the drilling plan, a total loss of drilling fluids was experienced, indicating a zone of high permeability and the well was completed at a depth of approximately 2,630 metres measured depth. Reaching the targeted zone of permeability via SJ 12-4 reflects an expansion of the steamfield to the north, and bodes well for planned drilling of SJ 12-5, which will further extend the production zone to the north. After a heating-up period, we estimate SJ 12-4 will be in position to complete flow-testing in early 2018, and will provide further updates as appropriate.The Company expects to connect SJ 12-4 to the San Jacinto power plant late in the second quarter of 2018, following completion of certain above-ground piping and infrastructure investments.

Connection of SJ 4-2 to the San Jacinto plant: Following conclusion of drilling in late July 2017, SJ 4-2 was connected to the plant in late August 2017. Preliminary mass flows and testing indicate that SJ 4-2 is producing steam flows of approximately 14 tones per hour (tph) and approximately 1.5 to 2 MW of annualized generation.

Connection of SJ 11-2, a significant new injection well, to the San Jacinto plant: Drilling of SJ 11-2, a directional injection well, was completed in early June 2017, and the well was put into service as planned, in mid-August 2017. Injectivity measurements to date suggest an absorption capacity of approximately 1,000 tph, meaning that SJ 11-2 significantly enhances overall reinjection capacity at the San Jacinto project. This increase in reinjection capacity allowed for another injection well, SJ 9-2, to be taken off-line and allowed to heat up, in hopes that it will flow as a production well. We will provide further updates with respect to possible conversion of SJ 9-2 to a production well in the weeks ahead, as appropriate.

Further production well drilling to continue in November 2017: With availability of the rig and favourable economies of scale associated with drilling multiple wells, PENSA is moving forward with plans to drill a third new production well as part of the 2017 San Jacinto drilling program. This well, SJ 12-5, will be drilled off the same well-pad as SJ 12-4, likely targeting further expansion of the production zone at San Jacinto to the north or northwest. Drilling of SJ 12-5 is expected to commence in November 2017.

“We are pleased with our achievements during the third quarter of 2017,” noted Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure. “The San Jacinto steamfield continues to deliver consistent generation and validates our strategy to expand the size of the resource and capitalize on the operating leverage we maintain. To that end, our 2017 drilling program appears to be yielding strong results and we look forward to providing further updates in the weeks ahead, as wells are assessed and then flow-tested.”

Source: Company release via Marketwire