Nevada Geothermal Updates Faulkner Plant Status

Nevada Geothermal Power Inc. announced that its Faulkner 1 power plant at Blue Mountain has been operating continuously since all three power generator units were brought back online on March 5, 2010 following an outage earlier in the year. The plant is currently generating between 36 and 38 megawatts (MW).


“We are very pleased with the performance of the plant since its full restart,” said Brian Fairbank, president and CEO of Nevada Geothermal. “We are now producing above the minimum threshold required by our power purchase agreement. With these achievements, we have confidence in our ability to further expand the Blue Mountain property and to execute our plan to begin developing our other properties in Nevada and Oregon this year.”

On March 27, an updated GeothermEx resource study on Blue Mountain was submitted to John Hancock Life Insurance as part of their due diligence requirements. The updated report incorporated data from Nevada Geothermal’s most recently completed wells. Given the recent submission of the report, the timeline for completion of the financing has been extended beyond the initial target date of March 31.

Construction of the pipeline for injection well 58-11 is in progress and it is expected that the well will be placed into service in April. The well, which is located in a new northern injection zone, is designed to enhance the distribution of injection fluids and supplement overall reservoir pressure support.

Between December 15, 2009 and March 9, well 44-14 was utilized as a temporary injection well. As a result of stimulation associated with the injection of fluid into 44-14, the well’s permeability increased dramatically. NGP now plans to reconfigure well 44-14 to become a production well and it is estimated that this process will take two to three months to complete.

Well 91-15 is still under development. Over the past two weeks the well’s temperature has risen from about 330°F to 359°F.  Nevada Geothermal plans to allow the well to heat up further, under static conditions, before conducting further testing and analysis.

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