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Nevada Geothermal Power and Ormat update on Crump project in Oregon

Snapshot of project fact sheet on Crump Geyser project (source: Nevada Geothermal Power)
Alexander Richter 14 Mar 2012

Nevada Geothermal Power and Ormat Nevada update on the Crump geothermal project in Oregon, reporting initial positive results and further feasibility work, with a potential development and plant being placed in service as early as 2013.

In a release today, Nevada Geothermal Power Inc. and Ormat Nevada Inc. update on the  “drilling and development progress on the Crump Geothermal Project located in Lake County, Oregon. The work is conducted through Crump Geothermal Company LLC (CGC), a holding company owned 50:50 by Ormat Inc. and Nevada Geothermal Power Company with funding provided by Ormat.

Geothermal leaseholds of the Joint Venture cover 35 square miles in the Warner Valley Rift Basin. An airborne magnetic survey performed in April, 2011 over the lease area shows extensive faulting within permeable volcanic stratigraphy underlying the wide valley floor with prominent fault directions oriented northeast and northwest. Hot springs occur along the west side of the valley from the Crump Geyser area near Adel, Oregon for a distance of seven miles northward to the LX Ranch. On the east side of the valley, the Fischer Hot Springs is connected to the Crump Geyser cluster of hot springs by northeast striking extensional fault trends.

Two slim resource confirmation wells drilled to 3000 feet below surface in 2011, encountered 265°F thermal water associated with a high-angle, range front fault along the west side of the Warner Rift. A third full-size (13-inch diameter) development well to 5000 feet below surface which intersected sub-commercial temperatures but good permeability may be used as an injection well. The results confirm a geothermal resource in the near surface associated with west side-wall fault structures within the Warner Rift.

Geothermal resources at 260-265°F have been successfully developed by Ormat using binary technology. Ormat, as the project manager, plans further feasibility work at the Crump Geyser project including additional development wells testing the 265°F thermal zone in 2012. Power marketing and transmission studies have been completed; Ormat has deferred entering into a power contract until late 2012 or early 2013. Development continues on a schedule to enable an initial power plant with nameplate capacity of up to 30 MW to be placed in service in 2013 subject to successful feasibility work and completing a power off-take agreement.

Drilling in the valley basin adjacent to the 265°F wells is also planned to explore for potential higher temperature resources (300-320 °F) pending approval of operations by the Army Core of Engineers.

On Nevada Geothermal Power restructure and recapitalization efforts, the company reports that “a process to restructure NGP as well as the EIG loan is proceeding under an advisory agreement with Canaccord Genuity. The Company anticipates a continued constructive approach from all parties while Canaccord Genuity’s work is underway.

The Faulkner 1 power plant is producing steadily at approximately 41MW (gross), 32 MW (net) while the company monitors resource information following the implementation of a resource maintenance program involving the re-distribution of plant outlet brine into three new injection wells.

Separately, NGP has elected to drop its leases at East Brawley. Results of drilling on adjacent land by others were not sufficiently encouraging to continue with the project in the face of high development risks and costs. The company is focusing its Imperial Valley development activity on the New Truckhaven Project.”

Source: Nevada Geothermal Power release via Newsletter