Nevada Geothermal Power completes independent resource review of New Truckhaven project

Nevada Geothermal Power completes independent resource review of New Truckhaven project Drilling rig on site at Truckhaven, California (source: Enex)
Alexander Richter 20 Jun 2012

Nevada Geothermal Power announces independent resource review of its New Truckhaven project in the Imperial Valley, California. The report was provided by Icelandic engineering group Mannvit in accordance with the Canadian Geothermal Reporting Code.

In a release yesterday, Canadian TSX-Venture listed geothermal developer Nevada Geothermal Power Inc. (NGP) announced “that it has completed a comprehensive independent review of all resource information for the New Truckhaven project that provides an updated resource assessment and estimation of electrical power generation capacity of the field. This evaluation was conducted by Mannvit HF., an Icelandic engineering and consulting company based in Reykjavík, Iceland. The report concludes that the Indicated Geothermal Resource is of a sufficient size to proceed with the development of an initial net 27 MWe binary power plant at New Truckhaven. The study concludes that:

The initial reservoir temperature in the inner, hotter part of the field that will host the production wells is 370-380°F and the average temperature of the entire reservoir is estimated to be up to 355°F.

The geothermal reservoir is estimated to have a surface area of 6.3 square miles and an average thickness of 3000 feet.

The geothermal resource of the Truckhaven geothermal field is classified of an “Indicated Geothermal Resource” in accordance with the Canadian Geothermal Reporting Code.

The recoverable electric energy (net MWe) is estimated to be: P90 (35 MW), P50 (60 MW) and P10 (95 MW) for 20 years. The most likely value is 53 MWe for 20 years.

The reservoir is over-pressured with a static well head pressure of 250 psi. Reservoir fluids are benign with low salinity (TDS < 4,000 ppm) and low non-condensable gases (ca. 1-1.5%).

The deliverability of the Phillips Trk-1 well is high and previous workers provided a range of flow estimates with a maximum as high as 1,800,000 lbs/hr at 361°F; a flow that could be achieved if the entire 3000 foot thickness of the reservoir were open to a full-sized commercial well bore. This high estimate of flow rate corresponds to a gross electric power generation capacity of 13 MWe gross for such a well and would be supportive of the planned development potential of 8 MWe net proposed by NGP for new wells in the field.

The assessment recommends a continuation of development including drilling of up to 4 shallow gradient holes to facilitate location of a commercial-sized confirmation well in the hottest portion of the field followed by 2 to 3 commercial sized appraisal wells which together can be used to confirm well deliverability and to conduct longer term reservoir testing.

The resource assessment by Mannvit included a review of all available geologic, geochemical and geophysical data that has been generated through exploration conducted by previous field operators including Phillips Petroleum Company and Iceland America Energy, LLC. Drilling and testing results from the Phillips Trk-1 well (8089 feet) and IAE-1 well (6890 feet) were included in the study.

Nevada Geothermal Power currently holds 6267 gross acres of geothermal leases within the New Truckhaven resource area in California’s Imperial Valley. NGP has conducted initial development activities including drilling a ground water assessment well. Permitting has been initiated through Imperial County as the lead permitting agency for geothermal development at Truckhaven and includes plans for the drilling of up to six commercial wells for development of the resource. The New Truckhaven resource is located in the Imperial Valley, south and west of Salton City and about 4.5 miles (7 km) west of the Salton Sea. Negotiations are proceeding to form a Bureau of Land Management (BLM) Unit area for the project.”

Source: Company release via Marketwatch