QUARTER HIGHLIGHTS
The achievement of commercial operation of the Phase II expansion at San Jacinto in December 2012 continued to generate strong year-over-year revenue growth for the Company of $11.2 million for the three months ended September 30, 2013, compared to $6.9 million for the same period in 2012, a 62% increase. EBITDA, as defined below, increased 214% to $6.9 million for the three months ended September 30, 2013 compared to $2.2 million for the three months ended September 30, 2012.
Significant accomplishments and key highlights during the quarter and to date include:
· The Company generated approximately 103,840 MWh (net) for the quarter ended September 2013 which is a 34% increase over the comparable quarter for 2012. Year to date through September 2013, the Company generated 332,837 MWh (net) and billed $36 million which is a 49% increase in net generation and a 79% increase in revenue over 2012. Revenue increased at a higher rate than generation as a result of the tariff increase effective October 2012.
· Remediation of Well SJ 6-1: The Company successfully replaced 367 meters of damaged liner and perforated a 60 meter section of liner which had demonstrated increased temperature and permeability. SJ 6-1 steamflow is currently estimated at 9.8 tonnes / hour or 1.3 MW (gross) and the well was connected to the plant on September 26, 2013.
· Remediation of Well SJ 6-2: The Company successfully perforated 60 meters of blank liner to recover production at an upper major zone that may have been affected by prior mineral deposition to preserve the long-term physical condition and production of the well. After a brief recovery period, well SJ 6-2 was placed back in service and steam-flow is currently estimated at 58 tonnes / hour per hour or 8 MW (net).
· Remediation of Well SJ 9-3: The Company successfully drilled a fork leg to a total depth of 1,900 meters during which the drilling operation experienced a total loss of circulation at 1,200 meters and 70 to 80% circulation losses for the remainder of the drilling which is a strong indication of high permeability. The well is scheduled to be placed back in service in late November; results to date are encouraging and further details will be disclosed as available.
· Remediation of Well SJ 12-3: The Company has begun the remediation efforts on well SJ 12-3, and expects the efforts to conclude in early December, and following a recovery period, expects SJ 12-3 back in service in mid-December; results to date are encouraging and further details will be disclosed as available.
· Overhead cost savings of $1.1 million and $1.7 million were realized for the three and nine months ended September 30, 2013, respectively, as a result of the 2013 corporate restructuring.
Antony Mitchell, Executive Chairman for Ram Power, stated, “Notwithstanding the interruptions in production that occurred due to the remediation program, San Jacinto continues to generate strong revenue and EBITDA for the quarter. We look forward to the successful completion of the remediation program in December, and the continued review and reductions of all general and administrative costs across the Company.”
