Ram Power completes corporate restructuring and gives projects update
Following the installment of a new CEO, Ram Power now announces the finalization of corporate restructuring at its corporate headquarter in Reno, Nevada and provides updates on its projects at San Jacinto and Casita.
In a release last week, “Ram Power, Corp. (TSX: RPG) provided an update on its projects San Jacinto and Casita, as well as on recent corporate restructuring efforts made.
San Jacinto Project
Well SJ 12-3 at the San Jacinto Project was completed on August 23, 2011 to a depth of 7,841 ft. Well SJ 12-3 represents the Company’s objective of drilling to confirm an eastwards extension of the San Jacinto Reservoir. After completion of the drilling, the well was flowed for 3 days to allow for stabilization. Following stabilization, the Company conducted a 10 day flow test under the supervision of Sinclair Knight Merz (“SKM”), the Company’s resource consultant, which confirmed the well output of 30 tonnes per hour (t/h) of steam which equates to a power generation capacity of 3.9 MW (gross) at a design separation pressure of 5.1 barg. Following the flow test, the Company performed a pressure build-up test and determined that the well is connected to the main reservoir (constant pressure boundary) and is not isolated, therefore expanding the total volume of the confirmed San Jacinto resource. In addition, the well did exhibit some degree of impaired permeability possibly d ue to rock cuttings that may be removed through further stimulation which may result in improved well output.
As previously disclosed, the Company commenced in July of 2011 the drilling of the first of two slim holes designed to prove the commercial viability of the resource at the Casita concession. The first slim hole has been drilled to a depth of 842 meters with a total loss of circulation. A temperature survey conducted in the well has indicated temperature readings exceeding 230° Celsius (446° Fahrenheit). The temperature results obtained and the permeability found indicate that the location has a high probability of being a commercial resource. The company will commence in December the drilling of the second slim hole at a location approximately 1.7 km from the first slim hole.
In September, the Company completed a reorganization of its personnel in the corporate office in Reno, Nevada. This reorganization resulted in the reduction of both expenses and staffing levels which will parallel the organization with the near term focus of completing the development of Phase I and II of the San Jacinto project. The reorganization is expected to save approximately $4 million a year in corporate G&A expense and will result in increased corporate cash flow.
“I am pleased with the results of our drilling program at both the San Jacinto project and the Casita concession,” stated Shuman Moore, Chief Executive Officer of Ram Power. “We have also made great strides in reviewing the overall structure and composition of the Company, which will allow greater cash flow into the Company and will better suit the needs of our project base well into the future.”
Source: Company release via email