Nevada Geothermal Power releases independent resource review on Blue Mountain

Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)
Alexander Richter 7 Sep 2011

Nevada Geothermal power completes comprehensive independent review of all resource information. The study makes recommendations that should help stabilizing the production temperatures and further drilling to potentially increase production from current levels.

In a release today, “Nevada Geothermal Power Inc. announced that it has completed a comprehensive independent review of all resource information for the Blue Mountain project in order to gain a better understanding of the geothermal fluid flow system and ultimately to increase production from the Faulkner 1 geothermal power plant.

The study concludes that:

Deep western injection wells 55-15, 57-15, 58-15 and 61-22 inject cooled geothermal fluid from the power plant into the hottest known part of the geothermal field. Geochemistry of reservoir fluids predict that still hotter thermal water is present in this portion of the geothermal system. Current injection of cooled water under pressure may be impeding hotter water from deeper in the fault structure from flowing up and eastward to the section 14 production wells.

Shifting current injection from wells 55-15, 57-15, 58-15 and 61-22 to new well field areas along fault structures to the north and northeast would mitigate current well communication issues and allow for potential increased production from the power plant. Shifting injection may be achieved through stimulation of existing wells and by drilling new wells on identified structures.

Geothermal reservoir host rocks are extensively altered and faulted. New injection targets are indentified on structures trending north and northeast.
New production targets are identified on the deep structures to the west.

The study makes recommendations for increasing injectivity at existing shut-in wells to help stabilize the production temperatures and further drilling to potentially increase production from current levels.

The study was conducted under contract by Engeocon LLC. Stuart Johnson, principal of Engeocon, subsequently has joined NGP’s permanent staff to help implement the Blue Mountain and other NGP resource development programs. Mr. Johnson is a recognized authority on geothermal resource development, having successfully reversed start up reservoir production declines by redistributing injection fluids at the Dixie Valley and Stillwater geothermal fields in Nevada. He directed field development work at Steamboat Hills, Nevada that enabled expansion of production capacity from approximately 35 MW when the property was acquired by Ormat to approximately 90 MW today.”

Source: Company release via Yahoo