News out on Nevada - more drillingFURTHER BLUE MOUNTAIN TEMPERATURE DRILLING
Nevada Geothermal Power Inc. has disclosed a temperature gradient drilling program is near completion at the Blue Mountain project in Nevada. Eight holes have been drilled to depths up to 1,020 feet using an air rotary rig to map the subsurface thermal anomaly outward from the central thermal zone. At three valley locations where the depth of overburden exceeded the capability of the air drilling equipment, additional drilling with a mud circulation rig may be conducted after the initial results have been compiled. Results from the current drilling combined with earlier temperature gradient data and test wells Deep Blue No. 1 and 2 will be used to determine the optimum location for two production test wells.
Permits are in place for further flow and injection tests of Deep Blue No. 2 which was drilled earlier this year to 1,128 metres (3,700 feet). A $148,000 (U.S.) budget has been approved by the joint partners, the U.S. Department of Energy (DOE) and Noramex Corp, an NGP subsidiary. Financing will be shared $95,000 (U.S.) from the DOE and $53,000 (U.S.) from NGP. Stabilized well temperatures will be measured to determine the well heat up characteristics following a five-month period where the well has been shut in after drilling. The well will be discharged by air lifting in a similar fashion to an earlier "rig-on" well discharge. Subsequently, water injection tests will be performed and the combined results used to interpret the potential production well productivity at the location. The test equipment is scheduled to be on site by Oct. 18, 2004.
An independent report has been commissioned which will summarize available results, estimate the most likely energy reserves, and provide an updated discounted cash flow analysis.