News

Sierra Geothermal Power updates on exploration drilling program at Alum project

Alexander Richter 1 Mar 2010

Canadian Sierra Geothermal Power has commenced drilling a second deep observation well at its Alum project.

In a release by the company, “Sierra Geothermal Power Corp. [TSX-V: SRA] has provided an update on the exploration drilling program at its 100% owned Alum project. The Alum project is part of SGP’s Paymaster District geothermal area.

SGP has commenced drilling a second deep observation well at its Alum project. This well, called 26-19, follows last year’s drilling of deep observation well 25-29. The purpose of well 26-19 is to expand our knowledge of the Alum geothermal resource by exploring for temperature and permeability to depths of several thousand feet. Well 26-19 will utilize cutting-edge coiled-tube drilling technology in an effort to make deep drilling faster and more cost-effective. Coiled-tube drilling has found great success in the oil and gas industry but has never been used at a geothermal well.

Well 26-19 is eligible for reimbursement on a 50:50 cost share basis through the U.S. Department of Energy’s (DoE) Geothermal Technologies Program grant which was awarded to SGP in 2009.

SGP has contracted Xtreme Coil Drilling Corp. to drill the well with XTC 200 Rig # 4. The geological information obtained from Well 26-19 will be integrated into SGP’s 3D geologic model for Alum. The primary objective of the well is to test temperature and permeability in the subsurface. A secondary objective is to compare coil-tube drilling rates to conventional and core drilling rates in a geothermal field.

“We are excited to be working with Xtreme to demonstrate coiled-tube drilling and would like to thank the DoE for their support of the project. This well is intended to move the Alum project towards feasibility, potentially allowing us to start production well drilling, the next milestone in the plan to bankable feasibility,” said President and CEO Gary Thompson.”

Source: Company announcement