Nevada Geothermal Power to start drilling programme at Blue Mountain site
(ADPnews) - Oct 28, 2010 - Canada-based Nevada Geothermal Power Inc (OTC:NGLPF), or NGP, said Wednesday it had awarded Ensign Drilling a CAD-8.4-million (USD 8.1m/EUR 5.9m) deal to drill up to three injection wells at NGP's Blue Mountain property, as it seeks to boost production.
The new wells will be situated north and south of the core production zone. The company expects that the project will significantly raise energy production at the site from the current gross output of 48 MW. Funding will come from the John Hancock senior debt loan that NGP closed in September 2010. Drilling is to commence at the beginning of November.
The Blue Mountain property covers 17 sq miles (44 sq km), with only two sq miles developed at present. NGP has recently finished reservoir "tracer" analyses to determine fluid movement patterns between injection and production wells. When the three new developments are ready and tested, the company will create a new configuration of the well field in order to optimise production.
NGP expects that four of the current injection wells that are situated west of the production zone could be turned to high temperature production wells, with temperatures of 180ºC (350ºF) to 200ºC, without significant expenses. The wells are available and linked to the plant.