Sierra Geothermal Power Begins Drilling at Reese River, Nevada

Sierra Geothermal Power Corp. reports that drilling is under way at the company’s Reese River Project, Lander County, Nevada in order to test geothermal reservoir characteristics.

The drilling program is operated by Sierra Geothermal’s U.S. subsidiary, with partial funding of US$580,000 by the U.S. Department of Energy’s GRED III program. The Reese River project is rated by Richards and Blackwell as one of the top 15 undeveloped geothermal prospects in Nevada (Source: Geothermal Resource Council, Bulletin March/April 2002, The Forgotten Ones). Well 56-4 is an exploration slimhole and is permitted to a maximum depth of 1200 m (4000 ft). The State of Nevada has adopted a Renewable Portfolio Standard (RPS), which requires utilities to have 20% of their electricity supplied from renewable sources by 2015. Sierra Geothermal, which has several projects located near the California-Nevada border, recently acquired a portfolio of geothermal projects. Geothermal plants produce long-term revenues and provide continuous base-load power, often at or above 95% capacity.