RENO, NV--(Marketwire - Apr 25, 2011) - Ram Power, Corp. (
SJ12-2 Well
The Company completed the initial drilling of well SJ 12-2 in January 2011. Initial flow test results confirmed that well SJ12-2 will be a production well with an estimated capacity of about 4 MW gross. In order to maximize the potential production from this well, the Company commenced a fork of well SJ12-2 in March 2011 while retaining this initial productive leg of the well. Drilling of the SJ12-2 fork was successfully completed on April 17, 2011 to a depth of 7,248 feet and a 9 5/8 inch slotted liner was set to the total drilled depth. Total lost circulation of drilling fluid was encountered in the well and subsequent injection testing shows excellent permeability with an injectivity index of 30 tonne/hr/bar. This suggests a MW potential of 5-10 MW gross for the newly completed fork leg of the well. The whip-stock used in drilling the second leg has been successfully recovered from the well and currently the well is heating with expected certification in mid-May 2011 of the full MW potential of both legs of the well.
The San Jacinto-Tizate exploration drilling program is focused on developing the geothermal resources needed for the phased power plant expansion designed to increase production from the current 10 MW net electrical output to 72 MW net electrical output. Currently, the Company has achieved certification of 59 MW gross resource capacity in San Jacinto-Tizate. With the previously announced successful re-drill of well SJ 12-1 sidetrack 1, the initial flow test results for well SJ 12-2, and the planned acid wash of well SJ 9-3 (currently certified at 5.3MW gross) the Company anticipates wells SJ 12-1 and SJ 12-2, together with the incremental production from well SJ 9-3 after the acid wash, may result in an increase of 16 MW to 25MW in the gross certified resource capacity of the steamfield to a new total gross certified resource capacity of 75 MW to 84 MW.
Orita No. 4 Well
The Orita No. 4 well was drilled to a depth of 14,325 feet and initial flow testing shows fluid entries at 10,100 feet and 11,500 feet with 555°F measured at 12,430 feet under flowing conditions. A small bridge was encountered at 12,430 feet and a slotted liner was successfully run in the well to protect the current open hole completion from a depth of 9,202 feet to total depth. Current initial production testing only on the depth up to the encountered bridge indicates 300 kph of total mass flow which yields 70 kph of steam at commercial pressures for a steam plant. Sustained wellhead pressure is 125 psig. Additional testing which includes an extended flow test and injection to the Orita No. 2 well is planned to be conducted in May 2011. Typically wells with a flowing temperature and flow rate as measured at the Orita No. 4 well are considered viable for commercial power generation. Based on the initial flow testing on the section of the well up to the encountered bridge, management estimates the capacity of the well to be approximately 4 MW. In addition, given the 555°F temperature projected for the completed drilled depth of the well of 14,325 feet, any flow contribution found in this lower interval from 12,430 feet to 14,325 feet that is yet to be tested will be of high enthalpy and contributions of flow, even if small, will contribute additional enthalpy to the flow stream under these conditions. During the operations to clean the bridges from the untested section, the well showed enhanced permeability and the inability to regain full circulation of fluids. Given prior history of completed wells in the high temperature portions of the Imperial Valley, the well characteristics of this untested section are similar to excellent producing wells.
After completion of long term flow testing of the Orita No. 4 well and the Orita No. 2 well and further evaluation of the chemistry of the wells, the Company will determine the future resource development plan for the project.
Walt Higgins, Interim President and CEO of Ram Power, stated, "We are pleased with the drilling results at both our San Jacinto and Orita projects from our revised drilling program."
About Ram Power, Corp.
Ram Power is a renewable energy company focused on the development, production and sale of electricity from geothermal energy in Latin America, the United States and Canada.
Cautionary Statements
This press release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding exploration, development and production capacity, geothermal resources, recoverable geothermal energy or energy generation capacities, and future results of operations. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, statements regarding: the estimated and potential capacity of the SJ12-2 Well, the expected certification of the SJ12-2 Well, anticipated increases of the certified resource capacity of the San Jacinto-Tizate project site, the viability of Orita No. 4 well for commercial power generation, the estimated and potential capacity of the Orita No. 4 Well, and the future plans for the Orita project.
A number of known and unknown risks, uncertainties and other factors may cause Ram Power's actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, but is not limited to: imprecise estimation of probability simulations prepared to predict prospective geothermal resources or energy generation capacities; variations in project parameters and production rates; impact of significant capital cost increases; unexpected or challenging geological conditions; inability to obtain equity or debt financing; and other development and operating risks. These factors should be considered carefully and prospective investors should not place undue reliance on forward-looking information. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and the factors listed above are not intended to represent a complete list of the risk factors that could affect Ram Power. For additional information with respect to risks, uncertainties and assumptions, please also refer to the "Risk Factors" section of our most recent Annual Information Form filed with the Canadian securities regulatory authorities on
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