US Geothermal Inc has announced that US Geothermal Guatemala has found a commercial resource after drilling at the El Ceibillo project in Guatemala.
It means that two other wells in the south and west of the project area can be explored to see if they are commercially viable.
The resource was found at a depth of 1300 feet at a flowing temperature of 389 degrees Fahrenheit.
The drilling came after another programme found two shallow wells with high temperatures but not in commercial quantities.
The company also announced that the Guatemalan Ministry of Energy and Mines has approved the new project schedule included in a concession agreement sent to them in July.
US Geothermal chief executive Dennis Gilles said: “We are extremely pleased with the results of this well, discovering geothermal fluids with both high temperature and in commercial quantities.
“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.”
Drill pads for the next well are being constructed and drilling will start in the next few weeks depending on the weather.
A decision will be made on the site of the next production well depending on the results of the exploration of the two wells to the south and west of the project area.
Image: San Emidio (US Geothermal)
