Nevada Geothermal Power announces additional drilling at Blue Mountain

Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)
Alexander Richter 28 Oct 2010

Nevada Geothermal Power contracts Ensign Drilling for up to three new injection wells at its Blue Mountain geothermal project, financed by DOE Loan Guarantee backed John Hancock senior debt.

In a release by the company, “Nevada Geothermal Power Inc. (NGP) announces further development plans for the Blue Mountain Geothermal Project. The Company has contracted Ensign Drilling to drill up to three new injection wells in areas north and south of the core production area in order to further distribute injection water. The program, budgeted at $8.4 million, is funded out of the John Hancock Senior Debt Loan backed by a DOE Loan Guarantee which closed in early September 2010.

When completed the wells are expected to allow energy production to be significantly increased from current output levels (approximately 48 MW gross). Equipment is currently being mobilized and drilling is scheduled to start in the first week of November 2010.

The Company has recently completed reservoir “tracer” studies to determine fluid movement patterns between injection and production wells. Once the three new wells are completed and tested, NGP will determine a new configuration of the well field to optimize production. Along with the current wells in service, on-going remedial work and testing indicates that wells 91-15, 44-14, 36-14 and possibly others can be utilized in the final well plan.

In the medium term, the Company believes that four current injection wells located west of the production area can be converted to high temperature (180-200C) production wells at relatively low cost. The wells are already available and connected to the plant by insulated pipelines.

NGP has begun field assessment of additional target areas within the 17 square mile Blue Mountain property. Only two square miles are currently developed. Temperature gradient drilling to establish new resources is planned.”

Source: Company release via Marketwatch