News

Raser Technologies starts drilling at Lightning Dock project

Raser Technology, Thermo No1 plant, Utah (source: Raser)
Alexander Richter 2 Jun 2010

Raser Technologies starts drilling on its 15MW Lightning Dock project in New Mexico, with drilling to be performed by Barbour Well.

In a release by the company, “Raser Technologies, Inc. (NYSE: RZ), announced that it recently began drilling on its Lightning Dock project in New Mexico. The drilling is being performed by Barbour Well, Inc. of Henderson, Nevada under the direction of Raser’s Vice President of Resource Management, Ben Barker.

“The drilling has been going very well,” said Mr. Barker. “We began drilling a few days ago and expect this initial operation to last approximately ten days after which we will run a series of tests to determine water flow and temperature.”

Raser is re-entering a well (TFD 55-7) that was drilled in 1984 and was later abandoned because the water was not hot enough for traditional flash geothermal plants. Since then, new technology has made it feasible to economically develop lower temperature geothermal resources using a binary power system. Surveys of TFD 55-7 have shown temperatures in excess of 320 degrees Fahrenheit. GeothermEx, an independent consulting firm, estimated that TFD 55-7 had the potential to produce between 3-7 MW.

“We believe we are on track with the Lightning Dock project and are looking forward to positive test results,” said Nick Goodman, Raser CEO. “Once those results are in, we intend to proceed with efforts to finalize financing to fund additional drilling to develop the well field for the project. We’ve placed a high priority on moving this project forward, allowing us to qualify for a 30% U.S. Treasury grant under the American Recovery and Reinvestment Act of 2009. Earlier this year, we received a $33 million U.S. Treasury grant for our Thermo No. 1, Utah project.”

Mr. Barker added, “This project has been a coordinated effort between Raser, the Bureau of Land Management, New Mexico’s Oil Conservation Division and the Office of the State Engineer working together to bring this important renewable energy on line.”

When complete, the Lightning Dock project is expected to deliver up to 15 MW of geothermal power.”

Source: Company release