U.S. Geothermal succesfully drilled 4th production well at Neal Hot Springs

Drilling rig at Neal Hot Springs, Oregon (source: US Geothermal)
Alexander Richter 4 Nov 2010

U.S. Geothermal announces the successful drilling and testing of NHS-2, the 4th production well at the company's Neal Hot Springs geothermal power project in Oregon, U.S.

In a release, “U.S. Geothermal Inc. announces that its subsidiary, USG Oregon LLC, has successfully drilled and tested NHS-2, the fourth large diameter production well at the Neal Hot Springs geothermal project located in eastern Oregon. The production well encountered the reservoir at 2,983 feet (979 meters). The well flowed under artesian pressure at a rate of 3,027 gallons per minute (“gpm”). The production temperature of the well is 287 degrees F (142 degrees C). USG Oregon LLC is owned 80% by U.S. Geothermal and 20% by Enbridge Inc.

Subject to establishing reservoir pressure support by drilling additional injection wells, the four wells complete the total production wells needed for the 23 net MW project. Three existing production wells have previously been drilled and tested. Well NHS-1 intersected the reservoir at 2,287 feet (750 meters) and flows under artesian pressure at a rate of 2,315 gpm with a production temperature of 286.5 degrees F (141 degrees C). Well NHS-5 encountered the reservoir at 2,796 feet (917 meters) and flows at a rate of 1,500 gpm and with a production temperature of 286 degrees F (141 degrees C). NHS-8 intersected the reservoir at 3,604 feet (1,182 meters) and flows at a rate of 2,770 gpm with a production temperature of 287.5 degrees F (142 degrees C). Wells with a flowing temperature of 286 degrees F (141 degrees C) and a pumped flow rate of 2,000 to 3,000 gpm are considered very viable to substantiate commercial power generation.

Daniel Kunz, President and Chief Executive Officer, said, “NHS-2 has the highest artesian flow rate of any well drilled at Neal Hot Springs. Like NHS-8, this is a great well. I am pleased that all four of these production wells came in under budget and we are able to reduce the total cost of the project by drilling smaller diameter injection wells.”

The four production wells were drilled with a bottom-hole diameter of 12.25 inches; however, the project has employed a second rig to drill 8 inch bottom-hole diameter, low cost injection wells. Two injection wells, NHS-13 and NHS-10, have already been drilled and tested and together are expected to take up to 1800 gpm.”

Source: Company release via Marketwatch