Pumpernickel this year.Pumpernickel is our next project.
Sierra Geothermal had been told to step it up.
We have told Sierra that we have stepped up the schedule.
We want to start Pumpernickel NOW in 2008,
NOT over the next few years as previously envisioned.
If Sierra wants their 50% of the project, which I assume that they do,
they must hand over the money and stock NOW.
NGP, the operator, wants to use this money to get the first test hole drilled this year.
RJ
The News Release:
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Nevada Geothermal and Sierra Geothermal Amend Pumpernickel Property Option Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2008) - Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF) is pleased to announce that Sierra Geothermal Power Corp. (SGP) on December 12, 2007 it signed an amendment to the option agreement to revise the earn-in schedule with NGP for the Pumpernickel geothermal land. The original option agreement was entered into on October 12, 2004 and amended on February 14, 2006. To date SGP has issued 400,000 shares of stock and forwarded C$1,000,000 to Nevada Geothermal for Pumpernickel.
In order to earn-in the 50% joint venture interest in the Pumpernickel geothermal land, SGP is required to make remaining cash payments and to issue stock as follows:
(a) pay NGP $70,000,
(b) incur exploration and development expenditures totaling $4,000,000,
(c) issue 200,000 common shares of SGP to NGP by December 15, 2008.
The Pumpernickel property is operated by NGP and is located in Humboldt County, Nevada. Pumpernickel project has produced reservoir temperature estimates from 150 degreesC (302 degreesF) to 218 degreesC (424 degreesF). Future work will include temperature gradient wells, a full size production test well, transmission studies and feasibility studies. The Pumpernickel site is estimated to contain a 20 - 30 megawatt resource enough electricity to power 24,000 homes.