One month after Raser Technologies (RZ-$8.85) broke ground for the construction of its first geothermal power plant in Beaver County, Utah, the executive management team updated analysts on the company’s progress on its pilot 10-megawatt facility. Steve Brown, Executive Vice President of Construction and Engineering, commented that its first plant is projected to be online in October. Doubt it!
The Company is already calling its first geothermal power station a success—even though its production wells have yet to be flow tested! Volumetric flow rate, static and flowing pressure surveys, net power potential—the precise data needed to determine the electrical production characteristics and the feasibility of the recoverable geothermal reservoirs as a base-load energy source is still not available.
Largely overlooked by all the investors long Raser common stock, too: independent third party analysis of the resource must be issued, too, before Merrill Lynch releases the requisite construction funding for the plant (under the terms of its Commitment Letter).
Looking at competitive well-test programs, flow-testing scheduling should take no longer than one to two more months to complete.
The 10Q Detective looks forward to more successful Financial Analyst Days ahead at Raser.
Editor David J. Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.