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Nevada Geothermal Power update on Blue Mountain

Alexander Richter Alexander Richter 1 Apr 2010

Nevada Geothermal Power provides update on Faulkner 1 plant at Blue Mountain, including details on senior debt financing and well development. The plant is currently generating between 36-38 MW (net).

In a release, “Nevada Geothermal Power Inc. announces that its Faulkner 1 power plant at Blue Mountain has been operating continuously since all three power generator units were brought back online on March 5th. The plant is currently generating between 36 and 38 MW (net).

“We are very pleased with the performance of the plant since its full restart,” stated Brian Fairbank, President and CEO. “We are now producing above the minimum threshold required by our power purchase agreement. With these achievements, we have confidence in our ability to further expand the Blue Mountain property and to execute our plan to begin developing our other properties in Nevada and Oregon this year.”

Senior Debt Financing Update: On March 27th, an updated GeothermEx resource study on Blue Mountain was submitted to John Hancock Life Insurance as part of their due diligence requirements. The updated report incorporated data from NGP’s most recently completed wells. Given the recent submission of the report, the timeline for completion of the financing has been extended beyond the initial target date of March 31st. NGP continues to work cooperatively with TCW who have indicated no intention of changing the agreement in principle reached in November 2009.

Well Updates: Construction of the pipeline for injection well 58-11 is in progress and it is expected that the well will be placed into service in April. The well, which is located in a new northern injection zone, is designed to enhance the distribution of injection fluids and supplement overall reservoir pressure support.

Between December 15th and March 9th, well 44-14 was utilized as a temporary injection well. As a result of stimulation associated with the injection of fluid into 44-14, the well’s permeability increased dramatically. NGP now plans to reconfigure well 44-14 to become a production well and it is estimated that this process will take two to three months to complete.

Well 91-15 is still under development. Over the past two weeks the well’s temperature has risen from about 330deg F to 359 deg F. NGP plans to allow the well to heat up further, under static conditions, before conducting further testing and analysis.”

Source: Company release via Market Watch