US Geothermal Inc. said its whole owned subsidiary U.S Geothermal Guatemala SA has completed the drilling of well EC-2A and that well has successfully intersected a commercial geothermal resource at its El Ceibillo project in Guatemala.
The resource found in well EC-2A was intersected at a depth of 1,300 feet (396 meters) and had a flowing temperature of 389 degrees F (198.5 degrees C). This well was drilled to follow up on a 2014 temperature gradient drilling program in which two shallow wells also found high temperature fluid, but not in commercial quantities. Temperature gradient well TG-6 recorded a fluid temperature of 372 degrees F (189 degrees C) at 558 feet (170 meters) and well TG-7 found fluid at 381 degrees F (194 degrees C) at 659 feet (201 meters) deep.
The company also said the Guatemalan Ministry of Energy and Mines had approved the modified project schedule that is included in its concession agreement on July 21, 2015. The modified project schedule was updated in the concession agreement and was approved October 13, and the Minister of Energy and Mines signed the final decree approving the modified concession agreement.
“We are extremely pleased with the results of this well, discovering geothermal fluids with both high temperature and in commercial quantities” said Dennis Gilles, Chief Executive Officer. “We are additionally pleased and grateful to the Minister of Energy and Mines, for providing the final approval of our modified concession agreement. Our goal now is to continue to expand the reservoir area, and define the expected size of the project so we can move forward to secure a Power Purchase Agreement and start construction.”