RESPEC PROJECT

2014
Dr. Dan Hoyer, working for Veizades, reviewed the proforma estimate and compared it with past actual operating budgets. He identified key value drivers and potential improvements. Dan then exercised the financial model to determine the range of possible internal rates of return and net present value. He also evaluated the potential for expansion and strategic stakeholders and potential approaches to the Power Purchase Agreement, permitting, transmission, and other critical items.

2019
Working for Veizades, Dr. Dan Hoyer reviewed the operating history and past capital investments to confirm if the impact of the capital improvements resulted in cost savings or increased revenue represented by the proforma. The performance of the brine handling systems and related impact on injection well performance, scaling, and cooling tower performance during summer were also reviewed. The team analyzed the historic variable cost, major maintenance and well workovers, and preventive maintenance, focusing on the cost drivers and future capital costs to confirm the proforma estimate. The team analyzed the PPA and transmission agreement. The findings from these evaluations were summarized in a probability table for each cost driver.

Stages
7. Due Diligence