VANCOUVER, Sept. 25, 2012 /CNW/ - Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP) reports that an updated resource report describing a completely
recalibrated numerical simulation model and outlook projection prepared
by independent consultant GeothermEx Inc. for the Blue Mountain
geothermal field predicts significantly lower power output, as compared
to projections outlined in an October 2011 report, also prepared by
GeothermEx. Base case projections assume the current configuration of
production and injection wells operating at their current flow rates
without further investment. Updated resource reports are required
annually under the Company's loan agreements.
Base case temperature declines are projected to be on the order of
8ºF/yr in the near-term rather than declines of around 3ºF/yr as
projected in the 2011 GeothermEx report, and power output is projected
to fall below the currently nominated average supply amount of 34 MW
this year decreasing to about 15 MW by 2020.
NGP has proposed locations for up to three additional wells: two
injectors that would shift injection further to the northeast and
northwest and one producer that would target the inferred zone of deep
western heat after injection in this area has been relocated. The
reservoir simulation does not provide support for new wells; however,
GeothermEx notes that its reservoir simulation models are unreliable in
predicting the outcome of wells that have not been drilled.
The Company is in discussions with its lenders in an attempt to resolve
potential loan issues that may arise as a result of the projections
contained in the report. These discussions are geared to facilitate
transferring the Blue Mountain assets to the mezzanine lender.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is a renewable energy developer focused on
producing clean, efficient and sustainable geothermal electric power
from high temperature geothermal resources in the United States. NGP
currently owns leasehold interests in five properties: Blue Mountain, Pumpernickel Valley, and North Valley in Nevada, New Truckhaven in California, and Crump Geyser, in Oregon. These properties are at different levels of exploration and
This Press Release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
We have tried, whenever possible, to identify these forward-looking
statements using words such as "anticipates," "believes," "estimates,"
"expects," "plans," "intends," "potential" and similar expressions.
These statements reflect our current belief and are based upon
currently available information. Accordingly, such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which could cause the Company's actual results, performance or
achievements to differ materially from those expressed in or implied by
such statements. We undertake no obligation to update or advise in the
event of any change, addition, or alteration to the information catered
in this Press Release including such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Nevada Geothermal Power Inc.
For further information:
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng.
President & CEO
Nevada Geothermal Power Inc.
Toll Free: 866-688-0808