Sierra Geothermal Power Corp. (TSX VENTURE:SRA) (“Sierra Geothermal”) is very happy to report that drilling has commensed at the business’s Reese River Project, Lander County, Nevada. Well 56-4 can be an exploration slimhole and is permitted to a maximum depth of 1200 m (4000 ft). The aim of the well would be to test geothermal reservoir characteristics. The drilling program is operated by Sierra Geothermal’s US subsidiary, with partial funding of US$580,000 by the united states Department of Energy’s GRED III program.
The Reese River project is rated by Richards and Blackwell among the top 15 undeveloped geothermal prospects in Nevada (Source: Geothermal Resource Council, Bulletin March/April 2002, The Forgotten Ones). Phillips Petroleum and Amax Exploration drilled 52 temperature-gradient holes through the 1970’s and 1980’s. Contoured data of the temperature-gradient wells outline a150 degrees C/km heat-flow anomaly that’s approximately 4.8 km (3 miles) long in the northeast direction by approximately 1.6 km (1 mile) wide. The biggest market of the anomaly reaches a temperature gradient of over 500 degrees C/km having an overall average of 225 degrees C/km. The utmost calculated heat flow at Reese River is 1117 mW/m2 (Amax 1998). Utilizing a Monte Carlo simulation, the potential geothermal resource at Reese River was estimated to get a 90% possibility of generating 13 MW and a 50% possibility of exceeding 30 MW (Source: New Geothermal Site Identification and Qualification, PIER study made by GeothermEx, 2004). A 30 MW power plant has the capacity to produce enough electricity to power 24,000 homes.
To greatly help fulfill California’s targets to lessen greenhouse gas emissions, the California Public Utilities Commission announced on January 25, 2007 a ban on long-term purchases of electricity made by coal-fired power plants. The typical applies toinvestment in new power plants also to contracts of five years or even more. The move is likely to have a substantial impact on the near future electricity market in California. This news is positive for the geothermal industry. Sierra Geothermal has several projects located close to the California-Nevada border. HAWAII of Nevada has adopted a Renewable Portfolio Standard, which requires utilities to possess 20% of these electricity supplied from renewable sources by 2015.
Sierra Geothermal is really a renewable energy company centered on the exploration and development of clean, sustainable geothermal power. Geothermal plants produce long-term revenues and offer continuous base-load power, often at or above 95% capacity. Sierra Geothermal recently acquired a big portfolio of geothermal projects. The business intends to advance the development of its portfolio of projects by way of a mix of equity and/or joint ventures, while continuing to judge additional acquisitions.
With respect to the Board of Directors,
Gary R. Thompson
The info provided in this news release contains forward-looking statements within this is of the Safe Harbor provisions of the united states Private Securities Litigation Reform Act of 1995, including statements regarding potential energy resources and project development possibilities. These statements derive from Sierra Geothermal’s current expectations and beliefs and so are subject to several risks and uncertainties that may cause actual leads to differ materially from those described in forward looking statements, like the risks that the resource potential of anybody of our projects could be uneconomic because of the lack of a higher temperature water supply, or financing will never be designed for construction of the energy plants, and the revenues generated won’t prove sufficient to invest in operations and/or service debt, amongst others. Readers are cautioned to examine the chance factors identified by the business in its filings with Canadian securities agencies. Forward-looking statements derive from management’s expectations, beliefs and opinions on the date the statements are created. Sierra Geothermal Power Corp assumes no obligation to update forward-looking statements if management’s expectations, beliefs, or opinions, or other factors, should change.
SOURCE: Sierra Geothermal Power Corp.
Sierra Geothermal Power Corp. Mr. Gary R. Thompson, P.Geo President & CEO (403) 870-1166 or Toll Free: 1-800-563-5631 Email: [emailprotected] Sierra Geothermal Power Corp. Ed Muir Investor Communications Toll Free: 1-800-563-5631 Email: [emailprotected] Website: www.sierrageopower.com