Question-and-Answer Session
Operator
(Operator instructions) Your first question is from Ben Kallo of Stanford Group.
Ben Kallo – Stanford Group
Hi good morning.
Dita Bronicki
Good morning, Ben.
Ben Kallo – Stanford Group
Could you kind of give us a little more detail around Carson Lake, you mentioned briefly, and then also on the line and the plan that for financing that project?
Yoram Bronicki
Ben, it is Yoram. On Carson Lake, we have done two or we have drilled two fairly deep wells to try and identify a deep resource. From our results it is not there, but as we drilled in to the deep resource we have identified a lower temperature potentially prolific resource, which we call the shallow resource, we will explore that if this seems to be productive and a commercial project can be built around it and we will do that. Of course until we have proven that it is a viable resource there is nothing that we can say.
Ben Kallo – Stanford Group
And then on the – financing requirement that you have the next round of drilling finished?
Yoram Bronicki
No.
Ben Kallo – Stanford Group
Okay, so what is timing for financing the project, can you give as any more detail on that.
Dita Bronicki
The timing financing is something that you have estimated that it doesn’t always happen or doesn’t always close when you estimate but as it looks now it will be done before this summer and just to emphasis the project is generating today at around 17 megawatts and the drilling is in order to bring it to the 28 megawatt unrelated to the financing.
Ben Kallo – Stanford Group
Okay and then my last question is as far as PTC versus the ITC what are the different IRRs that you see, if you take the ITC upfront? And is that – are you guys looking at that for Brawley instead entering into sometime of tax modernization?
Dita Bronicki
The general answer that depending on the capital cost of the project, sometimes ITC is most favorable and sometimes PTC is more favorable. As you know there is a big variance in the capital that equals the geothermal project and depending on the capital cost regardless of the self for funding sometimes ITC is in more favorable and sometimes PTC is more favorable. Typically with respect to tax monetization the new ASP has opened a various forms of tax monetization. You can do the traditional partnership fleet, you can do leases, you can do other forms of ineffective financing depending on the condition of each say, specific projects. We do not have a specific plan for North Brawley; we are evaluating what would make a most sales. Especially the result for the possibility to get a grant in Europe say ITC. So this is still under evaluation.
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