News

Reservoir Capital extends exploration permit in Serbia

Spa clinic at Vranjska Banja, Serbia (source: vrnjacka-banja.co.rs)
Alexander Richter 21 Dec 2010

Reservoir Capital Corp. successfully completes 2010 work program, and reports extension of its geothermal exploration permit at Vranjska Banja until November 11, 2011.

In a release, “Reservoir Capital Corp. (TSX VENTURE:REO) reports that after successful completion of its 2010 work program, its geothermal exploration permit at Vranjska Banja has been extended until November 11, 2011. The Vranjska Banja exploration permit covers 1,750 hectares in area and surrounds the 2 hectare exploitation permit held by the Jumko A.D., with whom the Company signed an agreement to evaluate their existing geothermal wells (VG-2 and VG-3).

The final phase of the 2010 work program included a geophysical survey which utilized geo-electrical sounding to determine the structure and depth of the collector of the geothermal waters at Vranjska Banja. The survey included 12 resistivity soundings distributed along two survey lines totalling 6 line-km. Based on preliminary results of this survey, a target has been identified approximately 120 metres southeast of VG-2, with an interpreted zone with thermal water from about 100 metres to 1,500 metres in depth.

In addition to the geophysical survey, the Company has completed the first phase of the resource testing on VG-2 and VG-3, which included step-testing with three pressure draw-downs, and long-term simultaneous testing to determine the exploitation capacity of the existing wells. These tests concluded that VG-2 and VG-3 can be exploited with the capacity of 16.40 litres per second (“l/s”) and 19.63 l/s respectively, with a total capacity of 36.03 l/s. The Company will continue to measure water temperature, pressure, flow rate and chemistry through a full twelve month cycle to be completed in September, 2011.”

Source: Company release via Marketwire