News
Mar 04, 2010Nevada Geothermal Power Progress Report on Blue Mountain Resource and Faulkner 1 Debt Financing
CanGEA member Nevada Geothermal Power provides us with an update on the Blue Mountain resource and Faulkner 1 debt financing.
Vancouver, B.C. (March 4, 2010), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) announced today that interim power production from the Faulkner 1 geothermal plant has been increased from 13 MW (net) to 26 MW (net) with permanent cables installed to Turbine Generator Units One and Three. Cable repairs are expected to be fully completed to Unit Two and other electrical equipment on or before March 10, 2010 allowing the plant to be fully operational.
Newly drilled and tested, deep injection wells, 55-15 and 58-11, will allow production levels to be increased to between 36-40 MW (net) shortly after the Faulkner 1 plant is returned to full service.
New production Well 91-15, drilled to 8359 feet, is currently undergoing flow tests. Production pipeline and electrical service connections will take approximately 2 ½ months to complete. Thus plant output is expected to be significantly greater than 40 MW (net) by June 30, 2010.
Additional development drilling is continuing to test a target area southwest of the current production field.
John Hancock and the US Department of Energy (DOE) are continuing with their due diligence process to support a 20-year term senior debt financing and a related DOE Loan Guarantee. The results from the three new completed wells (55-15, 58-15 and 91-15) are to be incorporated into a resource update report by GeothermEx, Inc. which is a necessary component of the due diligence review. Thus, the expected date to complete the permanent financing is now the end of March, 2010.
Funding for all of the work described above is in hand and the program is within budget.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is an emerging renewable energy producer and developer focused on producing clean, efficient and sustainable geothermal electric power from high temperature geothermal resources, in the United States. NGP currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all of which are ideally situated in Nevada, and Crump Geyser, Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of over 200 MW from the current leaseholds.
To view this article in its entirety click here
