VANCOUVER, June 19, 2012 /CNW/ - Nevada Geothermal Power Inc. (NGP) (TSXV: NGP), (OTCBB: NGLPF) announced today that it has completed a comprehensive independent
review of all resource information for the New Truckhaven project that
provides an updated resource assessment and estimation of electrical
power generation capacity of the field. This evaluation was conducted
by Mannvit HF., an Icelandic engineering and consulting company based
in Reykjavík, Iceland. The report concludes that the Indicated
Geothermal Resource is of a sufficient size to proceed with the
development of an initial net 27 MWe binary power plant at New Truckhaven.
The study concludes that:
The initial reservoir temperature in the inner, hotter part of the field
that will host the production wells is 370-380°F and the average
temperature of the entire reservoir is estimated to be up to 355°F.
The geothermal reservoir is estimated to have a surface area of 6.3
square miles and an average thickness of 3000 feet.
The geothermal resource of the Truckhaven geothermal field is classified
of an "Indicated Geothermal Resource" in accordance with the Canadian
Geothermal Reporting Code.
The recoverable electric energy (net MWe) is estimated to be: P90 (35 MW), P50 (60 MW) and P10 (95 MW) for 20
years. The most likely value is 53 MWe for 20 years.
The reservoir is over-pressured with a static well head pressure of 250
psi. Reservoir fluids are benign with low salinity (TDS < 4,000 ppm)
and low non-condensable gases (ca. 1-1.5%).
The deliverability of the Phillips Trk-1 well is high and previous
workers provided a range of flow estimates with a maximum as high as
1,800,000 lbs/hr at 361°F; a flow that could be achieved if the entire
3000 foot thickness of the reservoir were open to a full-sized
commercial well bore. This high estimate of flow rate corresponds to a
gross electric power generation capacity of 13 MWe gross for such a well and would be supportive of the planned development
potential of 8 MWe net proposed by NGP for new wells in the field.
The assessment recommends a continuation of development including
drilling of up to 4 shallow gradient holes to facilitate location of a
commercial-sized confirmation well in the hottest portion of the field
followed by 2 to 3 commercial sized appraisal wells which together can
be used to confirm well deliverability and to conduct longer term
The resource assessment by Mannvit included a review of all available
geologic, geochemical and geophysical data that has been generated
through exploration conducted by previous field operators including
Phillips Petroleum Company and Iceland America Energy, LLC. Drilling
and testing results from the Phillips Trk-1 well (8089 feet) and IAE-1
well (6890 feet) were included in the study.
Nevada Geothermal Power currently holds 6267 gross acres of geothermal
leases within the New Truckhaven resource area in California's Imperial
Valley. NGP has conducted initial development activities including
drilling a ground water assessment well. Permitting has been initiated
through Imperial County as the lead permitting agency for geothermal
development at Truckhaven and includes plans for the drilling of up to
six commercial wells for development of the resource. The New
Truckhaven resource is located in the Imperial Valley, south and west
of Salton City and about 4.5 miles (7 km) west of the Salton Sea.
Negotiations are proceeding to form a Bureau of Land Management (BLM)
Unit area for the project.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 49.5 MW Faulkner 1 geothermal
plant in Nevada. It 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 six properties: Blue Mountain, Pumpernickel Valley, Edna Mountain 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