Nevada Geothermal Power Inc V.NGP

Preliminatry Results from Deep Blue No.2 - En

[dunebuddy]

Nevada Geothermal Power Inc. DB-2 Encounters 167°C (330°F) Temperatures TSX Venture Exchange – “NGP” OTCBB – “NGLPF May 6, 2004 Vancouver, B.C., Nevada Geothermal Power Inc. (NGP) is pleased to report preliminary results from Deep Blue No.2 (DB-2) test well at its 100% owned Blue Mountain geothermal project in Nevada. DB 2 was spudded on March 25, 2004 and was successfully completed to a vertical depth of 1128 meters (3700 feet) on April 28, 2004. The completion depth was over 10% deeper than planned. Costs for the operations, shared between Noramex Corp. (NGP wholly-owned subsidiary) and the U.S. Department of Energy are within the original budget. Temperatures were measured at the bottom of the hole at 25-metre (80-foot) intervals as the hole was put down. During drilling, fluid is circulated down hole to cool the drill bit and condition the wall of the hole. The bottom-hole-temperature (BHT) measurements had only ten minutes elapse time since drilling fluid was last circulated, thus they are “unequilibrated” temperatures that are lower than undisturbed rock temperatures at the equivalent depth. In addition to the BHT’s, temperature logs were obtained of certain hole intervals after allowing 2 - 6 hours equilibration time. Temperatures measured after 6 hours of static time may also be somewhat lower than undisturbed rock temperatures at equivalent depths. The well will now sit for a month before final logging of an equilibrated temperature profile is undertaken. The maximum temperature measured in the well was 167 °C (330 °F) at 585 metres (1920 feet) depth. A potential geothermal production zone between 515 - 760 metres (1690 – 2493 feet) is characterized by greater than 150°C (300 °F) temperatures measured after 6 hours static time, multiple crystal-lined, open fractures and vuggy quartz veins. Observations of brittle fractures and open spaces in drill core, combined with the fact that drilling fluid was being lost to the formation through the indicated geothermal zone during drilling, indicate good permeability allowing for geothermal fluid circulation through the host rock. DB - 2 was induced to flow continuously for two hours in the early morning of April 29 and again continuously for two hours later in the day, assisted by compressed air introduced into the well through tubing suspended to 457 and 533 metres (1500 and 1750 feet) for the respective tests. The well flowed at a rate of approximately five litres/second or eighty gallons/minute (US) for a total of 75,000 liters (20,000 gallons) of produced geothermal fluid. The short term flow tests of DB-2 have provided direct indication of a geothermal resource at Blue Mountain. Geothermal fluid samples have been sent for analyses to ThermoChem, Santa Rosa California for geochemical analyses. Injection and other testing of DB-2 to provide well productivity data are planned in conjunction with the Department of Energy. Similar attempts to flow Deep Blue No. 1 were unsuccessful because of a break or hole that developed in the well liner. A replacement liner is currently being installed. NGP is greatly encouraged by the positive results from DB-2. To illustrate the potential, the Steamboat Binary Geothermal Facility operated by Ormat near Reno, Nevada, currently produces about 30 MW of power from a 155°C (310°F) resource with production from an area of less than a square mile. NGP’s new results from DB-2 confirm that the inferred geothermal reservoir, with similar temperatures to Steamboat measured at moderate depths, extends at least 1000 meters (3300 feet) from the DB-1 discovery well and gives confidence that the Blue Mountain resource occurs at depth throughout the six-square-kilometer (two-square-mile) thermal anomaly defined by temperature gradient drill holes. That is, the Blue Mountain thermal anomaly is as large or larger than the Steamboat production field. The DB-2 results continue to indicate the potential for a geothermal resource capable of supporting an initial 30 MW power plant development within the six-square-kilometer thermal anomaly. The thermal anomaly is open in all directions and is probably larger than six square kilometers. NGP plans to determine the overall lateral extent of the thermal zone by drilling 10 - 12 additional gradient holes in the near future. Subsequently, two or more production scale test wells will be drilled to determine individual production well characteristics and the geothermal field productivity of as part of a geothermal power feasibility study. NGP is focused on the development of an initial 30 MW plant at Blue Mountain. The Company believes that ultimately, Blue Mountain may support 100 MW of power development that would be brought to market in 30 MW modules. NGP intends to acquire additional geothermal sites and become a leading geothermal development company. Nevada Geothermal Power Inc. is an alternative renewable energy company focused on the development of geothermal projects in the Nevada to provide electrical energy that is clean, efficient and sustainable. Nevada Geothermal Power Inc. Brian D. Fairbank, P. Eng. President & CEO Telephone: [phone] Facsimile: 604-688-5926 Email: [e-mail] www.nevadageothermal.com Investor Inquiries Shelley Kirk Nevada Geothermal Power Inc. Telephone: [phone] Toll Free: 866-688-0808 Email: [e-mail] Dale Paruk Coal Harbor Communications Telephone: [phone] Toll Free: 866-405-3954 Email: [e-mail] The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.