Quote: As an investor, how can we associate KW's produced by a given well to potential proven reserves of a company and further to a company market cap value and thus back to a potential share price?

I get a bit frustrated trying to value the geothermal plays. I own this and US Geothermal (AMEX:HTM). My guesstimate is that each KW is worth about $1K in annual earnings (8760 KWH). In the case of the Blue Mountain resource, estimated at 40MW, this becomes $40M in perpetual annual earnings once developed. If you apply a P/E of 10, which is rather low for a utility, you should have a market cap of $400M once the resource is developed. With 128M fully diluted shares, assuming 60% more dilution to complete the power plant at Blue Mountain, the share price should end up at $2/share, assuming that they have no other projects in the pipeline.

Since they are looking at 3 other properties currently, I would expect further growth in the future, adding at least one or two more $$ to the share price in the next 3-4 years.