A third new geothermal well, completed by Polaris Infrastructure, will come online this month in Nicaragua. Drilling of the production well at the San Jacinto project, SJ 9-4, indicates a zone of high permeability; the well was completed at a depth of 1,525 meters. Polaris expects to have SJ 9-4 connected to San Jacinto power plant by late October 2016. The first new production well, SJ 6-3, is now in the final stages of thermal recovery and currently connected to the plant; the well contributes additional steam to improve overall plant generation. The second well, SJ 14-1, completed in April 2016, will serve as an injection well for cold condensate. The mechanical workover and acidization of four existing wells, to complement SJ 9-4, achieved an approximately 31% increase in injection capacity. The third well in the project was completed 13 days ahead of schedule and US$700,000 over budget. Minimal drilling risk and nominal capital cost associated with incremental power generation makes the San Jacinto project favorable from a risk-adjusted return on capital perspective. Marc Murnaghan, CEO of Polaris Infrastructure, is confident that “strong and sustainable steam flows [will provide] tangible results [from] the drilling program in the upcoming quarters.”
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