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| (Courtesy Polaris Infrastructure) |
For the three months ended December 31, 2015, the company reported revenue of $12.1 million and Adjusted EBITDA of $9.4 million, compared to revenue of $12.9 million and Adjusted EBITDA of $9.5 million, for the same period in 2014. The decrease in revenue resulted from lower power generation at the San Jacinto project in November and December 2015, being partially offset by the impact of the 3% annual tariff increase during 2015.
Progress continues with 2015/2016 San Jacinto Drilling Program. The first new production well, SJ 6-3, was completed in late December 2015 and is currently in the midst of thermal recovery, after which production testing will be completed. We are confident that SJ 6-3 is a commercial well and will provide specific guidance as to estimated additional steam flows and hence MW contribution once production testing is complete.
Drilling of the second new production well, SJ14-1, is ongoing, with the timeline having been extended by mechanical issues. We have achieved circulation losses however, and expect to complete drilling of SJ 14-1 by the end of March 2016. Once SJ 14-1 drilling is complete, we look forward to continuing with the balance of the 2015/2016 Drilling Program, including a third new production well.
"We are satisfied with the operating results of the fourth quarter, and for 2015 overall, as they continue to demonstrate the company's ability to generate cash flow, while also investing significantly for the future," said Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure.
"We have made considerable progress with respect to the San Jacinto drilling campaign and remain optimistic that our production capacity will be enhanced as a result."
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