Drilling Begins for New Nevada Geothermal Project

To establish the presence of a commercially viable geothermal resource, Nevada Geothermal Power reports that four thermal gradient wells have been completed at the Pumpernickel geothermal power project in Nevada, which was previously studied and identified as one of the top geothermal prospects.

Two wells were drilled to approximately 1000 ft., one well to approximately 1180 ft. and the deepest test well, PVTG-3, was drilled to approximately 1600 ft. and lined with steel casing, which allows it to be deepened at a later time. Phase II, which will begin in early 2006, will include a deep well intended to drill into the Pumpernickel resource. Temperatures in wells continue to be measured, with well bore PVTG-3 providing the highest at 81 degrees C (178 degrees F). Drill cuttings were sent to the Nevada Bureau of Mines and water samples have been sent to Thermochem Labs for analysis. All the results are currently being collected and compiled and a summary report is expected within weeks. The Phase I budget was approximately US$926,000 that included direct exploration expenditures of US$740,000, 80 percent of which is to be funded by the U.S. Department of Energy under terms of a cost-sharing agreement and the balance from Inovison Solutions.

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