U.S. Geothermal this month said that it has deepened two wells at its San Emidio geothermal project in Washoe County, Nev., based on the wells’ high thermal gradient and bottom hole temperature.
The company said that Well 17-21 intersected the geothermal resource at 1,766 feet and has a measured flowing temperature of 319 degrees Fahrenheit. In addition, Well 25-21 intersected the geothermal resource at 2,206 feet and has a measured flowing temperature of 322 degrees Fahrenheit. Both wells flow under artesian pressure.
“These two wells have extended the size of the San Emidio Phase II reservoir,” U.S. Geothermal CEO Dennis Gilles said in an Aug. 8 statement. “Also significant is that this area of the reservoir has temperature that is 40 [degrees Fahrenheit] higher than we are currently producing in the San Emidio Phase I reservoir. This is an exciting outcome for the project and confirms our confidence that the San Emidio resource is large enough to support additional power generation.”
During an Aug. 10 earnings conference call, U.S. Geothermal President and COO Doug Glaspey said that the two well caps will be about 1,700 feet apart.
“[W]e are defining a fairly large structure on this resource,” he said. “Longer-term testing will be performed during third quarter to assess the highest average area of the reservoir and to provide data for the numerical reservoir model.”
Glaspey also said that additional drilling will be needed, and permitting for those activities will be started in the near term.
“Also at San Emidio2, we have received a draft interconnection agreement from NV Energy to increase our transmission capacity to 19.9 MW from our current level of 16 MW,” he said. “This increase will provide transmission needed for the Phase 2 power plant, and pending the [power purchase agreement], we will continue to set the stage for construction to begin on the project.”
During the Aug. 10 earnings call, U.S. Geothermal CFO Kerry Hawkley said that the company reported revenues for the year-to-date of $14.2 million, down 1.2 percent from the same period in 2015.
Net income attributable to U.S. Geothermal was a loss of $0.34 million in 2016 compared to income of $0.50 million in 2015, reflecting the effect of one-time adjustments for corporate overhead costs, he said, adding that income from plant operations remained consistent at $6.4 million.
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