Ram Power successfully completes remediation program in Nicaragua

ThermaSource drilling rig on project site at San Jacinto, Nicaragua (source: Ram Power)

Alexander Richter 22 Jan 2014

Ram Power, Corp. announces that it has finalized  the remediation program on four existing production wells at its San Jacinto-Tizate project has been successfully completed last week. The program was initiated on July 18, 2013.

The remediation drilling program to increase the steam resource of the Project called 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 plan is expected to increase steam availability of approximately 9 to 14 MW gross or 70-110 tonnes / hour of additional net capacity bringing total generation to approximately 59 to 63 MW (net). The remediation drilling operations were led by Sinclair Knight Merz, the resource consultant for the Company, and PENSA engineering personnel.

Update to Well SJ 9-3

As previously disclosed, during the heat-up period and discharge test of well SJ 9-3 in December of 2013, the Company conducted a sinker bar survey run and discovered an obstruction at approximately 1,100 meters in the main leg of the well.  Following the conclusion of the remediation efforts in SJ 12-3, the Company mobilized the ThermaSource drilling rig back to well SJ 9-3 to clear the obstruction.  The Company successfully drilled out the obstruction, and following the clearing, the Company conducted a sinker bar measurement which reached the final depth of 1,980 meters.

Well SJ 9-3 is now in thermal recovery and the Company remains encouraged with the initial results including, but not limited to, the drilling loss circulation during remediation, down hole temperature and the results of the injectivity test.

Update to Well SJ 12-3

As previously disclosed, following the conclusion of the remediation efforts in well SJ 12-3 in mid-December 2013, the Company was unable to retrieve the whipstock used to directionally drill the forked leg.  Following several down hole camera runs, the Company as a result of the information obtained from the video images was able to successfully retrieve the whipstock out of well SJ 12-3.

Well SJ 12-3 is now in thermal recovery, results to date are encouraging and further details will be disclosed as available.

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 expected in late-January 2014.  Following the completion of the resource remediation drilling program, the Company will conduct a plant capacity test expected to be concluded in March 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. ”

Source: Company release