Certification TimelineSJT 12-1 is completed. Let it heat up for 4 weeks, then a 3 week flow test. Certify by the end of May for 7.5 MW.
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Acid wash of SJT 9-3 is proceeding. After it's finished, let the well heat up for 4 weeks, then a 3-week flow test. Certify for an extra 2.5 MW (on top of certified 4.8 MW) by the end of May.
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So if Ram certifies 10 additional MW from 12-1 and 9-3, it will receive $98 million at the end of May from its $160 million SJT2 project loans. All concerns about a cash crunch are over. Even if they only get 5 additional certified MW from 12-1 and 9-3, which would be very unlucky, they would still receive $70 million from the project loans. I think it's very unlikely Ram will require additional bridge financing.
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SJT 12-2 re-drill for 30 days starting now. Finish by the end of April, let the well heat up for month of May, then a 3-week flow test, we should have certification of 8 to 10 MW by the end of June, or early July. If this well certifies for 10 MW, that's another 28 million from the project loan.
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Will they need another well? I think so. I estimate 80MW with good results from the above 3 wells. Hard to get to 85MW (and the full $140 million, plus $20 million contigency loan) without another well. Nothing to fret about, another 4 to 5 million in drilling costs. And there should be plenty of money to fund it.
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SJT Phase 1 is 80% complete, but it sounds like 2 injection wells will be required. Perversely, the one drilling rig is tied up with the SJT 2 wells until the end of this quarter probably (if I'm right they'll need another well). So the injection wells for SJT 1 will be drilled in July. This gives them just enough time to for a September COD (and you can see how any delays would push SJT 1 COD into the 4th quarter).
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Cash is tight until the end of May, but the only huge expenses are the drilling at 12-1 and at Orita 4 (80% finished). If they keep their burn rate about $10 million a month Ram, with its $50 million credit facility, should be fine.