Ram Power reports progress of San Jacinto-Tizate drilling program

Ram Power reports progress of San Jacinto-Tizate drilling program ThermaSource drilling rig on project site at San Jacinto, Nicaragua (source: Ram Power)
Alexander Richter 20 Dec 2013

Ram Power Corp. reports progress on its Remediation drilling program at its San Jacinto-Tizate plant and project in Nicaragua.

As part of a corporate update, Ram Power, Corp., provides details on its San Jacinto-Tizate remediation drilling program in Nicaragua.

“The Company is currently conducting a remediation drilling program to increase the steam resource of the San Jacinto-Tizate project. The remediation drilling program calls for the refurbishment of four existing production wells as well as the replacement and perforation of specified well casings along with the deepening and forking of two wells. The remediation drilling operations are being led by Sinclair Knight Merz, the resource consultant for the Company, in consultation with PENSA and ThermaSource Inc. (the “Remediation Team”).

Well SJ 6-1

In August 2013, the Remediation Team successfully replaced 367 meters of damaged liner and perforated a 60 meter section of liner which had demonstrated increased temperature and permeability. Well SJ 6-1 steamflow is currently estimated at 9.8 tonnes / hour or 1.3 MW (gross) and the well was connected to the plant on September 26, 2013.

Well SJ 6-2

In September 2013, the Remediation Team successfully perforated 60 meters of blank liner to recover production at an upper major zone that may have been affected by prior mineral deposition. After a brief recovery period, well SJ 6-2 was placed back in service and steam-flow is currently estimated at 9.5 MW (net).

Well SJ 9-3

The remediation program for well SJ 9-3 began on August 25, 2013 and was successfully remediated in three phases. During the heat-up period and discharge test of well SJ 9-3, the Company conducted a sinker bar survey run on November 24, 2013, and discovered an obstruction at approximately 1,100 meters in the main leg of the well. Following the discovery of the obstruction, the Company initiated a series of well air capping cycles by alternating well head pressures in an attempt to remove the blockage naturally and to stimulate well SJ 9-3 flow. On December 6, 2013, the Company conducted a down hole camera survey which reconfirmed the blockage at approximately 1,100 meters. As a result, following the completion of well SJ 12-3, the Company will mobilize the ThermaSource drilling rig back to well SJ 9-3 to clear the main leg obstruction.

The clearing of the blockage is expected to take approximately 10 days, at which time the well will be put back into thermal recovery. The Company remains encouraged with the initial results of well SJ 9-3, including, but not limited to, the drilling loss circulation during remediation, down hole temperature and the results of the injectivity test.

Well SJ 12-3

In preparation for the remediation work, well SJ 12-3 was removed from production on October 8, 2013. The Company successfully perforated the liner as well as deepened, and forked, well SJ 12-3 to approximately 2,400 meters. Following the remediation efforts, the Company was unsuccessful at retrieving the whipstock used to directionally drill the forked leg. A down hole camera was used to view the whipstock, and from the initial images it was evident that the casing joint holding the whipstock was not stable, preventing the whipstock retrieving tool from engaging the keyway pocket to extract the whipstock from the well bore.

Once the Company is able to retrieve the whipstock, the Company will continue with normal operations and drill out the isolation plug and retrieve the inflatable packer. The Company expects the process to finalize in the near future, at which time the well will be shut in for thermal recovery.

Remediation Testing Date

The Company and the Lenders are in negotiations to amend the remediation completion date in the Common Terms Agreement, with such revised date to start in mid-January 2014. Following the completion of the resource remediation drilling program, the Company will conduct a plant capacity test expected to be concluded in mid-February 2014. The test includes a 30-day stabilization period of the resource field followed by a 7-day performance test to determine the net operating output of the plant.

Remediation Summary to Date

The overall remediation drilling program has a targeted increase in steam availability of approximately 9 to 14 MW, or 70-110 tonnes / hour of additional net capacity bringing total generation to approximately 59 to 63 MW (net). At that level, utilizing the current power purchase agreement, the Company’s expected annualized net revenue will be approximately $56-61 million annually.”

Source: Company release via Yahoo