U.S. Geothermal reports successful Nevada wells

The 10 MW San Emidio geothermal power plant in western Nevada. Source: U.S. Geothermal Inc.

U.S. Geothermal Inc. [HTM-NYSE MKT], a leading and profitable renewable energy company focused on the development, production, and sale of electricity from geothermal energy, today announced that it has successfully intersected high temperature resource in the three additional wells drilled in the Southwest Zone of the resource area at its San Emidio II development project in western Nevada.

Drilling began on June 1st, 2017 and the three wells were deepened based on their high thermal gradient and bottom hole temperature.  Well 78-20 was drilled to 2,387 feet deep, intersected the geothermal resource at 2,314 feet, and has a measured flowing temperature of 324°F.  Well 18-21 was drilled to 2,177 feet deep, intersected the geothermal resource at 1,874 feet, and has a measured flowing temperature of 325°F.  The third well (28-21) was drilled to 2,799 feet deep, intersected the geothermal resource at 1,900 feet, and though less permeable than the other two, has a measured flowing temperature of 321°F.  For comparison purposes, the wellfield at our San Emidio I project is currently producing at an average temperature of 278°F.  All wells were completed with a 6 ¼ inch bottom hole diameter and a 4 ½ inch perforated casing liner.

The three newly completed wells extend the proven portion of the Southwest Zone approximately 1,000 feet further south and are expected to increase the P90 (90% probability) reservoir estimate of 18.7 net megawatts, announced in January, toward the 47 net megawatt P50 (50% probability) level.  This increased capacity is in addition to the 10 megawatts being produced by the San Emidio I plant from the Northwestern reservoir area.

A long-term flow test is in the planning stages. This test will provide more detailed information about the reservoir, so that an updated reservoir model can be developed to determine the maximum level of generation.  In addition, a Large Generator Interconnection agreement for 45 megawatts was filed with NV Energy on June 26th for the San Emidio II project.

“We are very pleased to report the excellent drilling results at our San Emidio II Project, that have exceeded our expectations in terms of temperature and generation potential,” said Dennis Gilles, CEO.  “Having the ability to add a larger power plant to our San Emidio complex will help reduce capital and operating costs, and give us a very cost competitive project.  Additionally, it will allow us to deploy the previously acquired power plants, whose acquisition we had announced in early 2016.”

U.S. Geothermal is currently operating geothermal power projects at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho for a total power generation of approximately 45 MWs. The company is also developing an additional estimated 115 MWs of projects at: the Geysers, California; a second phase project at San Emidio, Nevada; at Crescent Valley, Nevada; and the El Ceibillo Project located near Guatemala City, Guatemala.  U.S. Geothermal’s growth goal is to reach over 200 MWs of generation by 2021 through a combination of internal development and strategic acquisitions.

Filed in: Green Technologies, Industry, Resources

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