Sierra Geothermal Drills Deep at Alum
February 25 2010 - 9:30AM
Marketwired
Sierra Geothermal Power Corp. (TSX VENTURE: SRA) ("SGP") today
provides an update on the exploration drilling program at its 100%
owned Alum project. The Alum project is part of SGP's Paymaster
District geothermal area.
SGP has commenced drilling a second deep observation well at its
Alum project. This well, called 26-19, follows last year's drilling
of deep observation well 25-29. The purpose of well 26-19 is to
expand our knowledge of the Alum geothermal resource by exploring
for temperature and permeability to depths of several thousand
feet. Well 26-19 will utilize cutting-edge coiled-tube drilling
technology in an effort to make deep drilling faster and more
cost-effective. Coiled-tube drilling has found great success in the
oil and gas industry but has never been used at a geothermal
well.
Well 26-19 is eligible for reimbursement on a 50:50 cost share
basis through the U.S. Department of Energy's (DoE) Geothermal
Technologies Program grant which was awarded to SGP in 2009.
SGP has contracted Xtreme Coil Drilling Corp. to drill the well
with XTC 200 Rig # 4. The geological information obtained from Well
26-19 will be integrated into SGP's 3D geologic model for Alum. The
primary objective of the well is to test temperature and
permeability in the subsurface. A secondary objective is to compare
coil-tube drilling rates to conventional and core drilling rates in
a geothermal field.
"We are excited to be working with Xtreme to demonstrate
coiled-tube drilling and would like to thank the DoE for their
support of the project. This well is intended to move the Alum
project towards feasibility, potentially allowing us to start
production well drilling, the next milestone in the plan to
bankable feasibility," said President and CEO Gary Thompson.
About Alum Project
The Alum geothermal power project is part of SGP's Paymaster
district and located near the Nevada-California border in Esmeralda
County, Nevada, 240 kilometres (150 miles) northwest of Las Vegas,
and covers 7,198 acres. There is a 55 kV line that runs within a
few hundred meters of the lease boundary. GeothermEx's independent
analysis of the Alum heat anomaly estimates a resource capacity of
73-150 megawatts of power with a 20 year plant life. Chemical
geothermometry analysis has indicated reservoir temperatures up to
225 degrees Celsius may be present. The maximum recorded
bottom-hole temperature is 129 degrees Celsius at a depth of 610
meters. The lands containing the Alum heat anomaly have been
unitized by the Bureau of Land Management with SGP the designated
unit operator.
About The Paymaster District
SGP recognized the area as a district geothermal opportunity
many years ago. The projects within the Paymaster District consist
of three prospects: Alum, Silver Peak and Pearl, having a combined
probability at the 90% level of generating over 100 megawatts of
power. A 100 megawatt geothermal plant provides enough power to
supply 80,000 homes.
About Sierra Geothermal Power Corp.
Sierra Geothermal Power Corp. is a renewable energy company
focused on the exploration and development of clean, sustainable
geothermal power. It is based in Vancouver, British Columbia and
listed on the TSX Venture Exchange under the symbol SRA. Its
portfolio of geothermal projects located in Nevada and California
exceeds 365 square kilometres (90,000 acres) and has a combined
total estimated capacity of greater than 500 megawatts. SGP intends
to finance development by utilizing a combination of corporate
equity, joint venture partnerships and project debt, with the
support of US government grants and loan guarantees. To find out
more about Sierra Geothermal Power Corp. (TSX-V: SRA) visit our
website at www.sierrageopower.com.
On behalf of the Board of Directors
Gary Thompson, P.Geo., President, Chief Executive Officer and
Director
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements.
Forward-looking statements are projections of events, revenues,
income, future economic performance or management's plans and
objectives for future operations. In some cases you can identify
forward-looking statements by the use of terminology such as "may",
"should", "anticipates", "believes", "expects", "intends",
"forecasts", "plans", "future", "strategy", or words of similar
meaning. Forward-looking statements in this press release include
statements about well 26-19 will utilize cutting-edge coiled-tube
drilling technology in an effort to make deep drilling faster and
more cost-effective, well 26-19 being a deep well intended to move
the Alum project towards feasibility potentially allowing us to
start production well drilling, the next milestone in the plan to
bankable feasibility, and the Company's intent to finance the
development of its projects through a combination of corporate
equity, joint venture partnerships and project debt with the
support of U.S. government grants and loan guarantees. These
statements are only predictions and involve known and unknown
risks, uncertainties and other factors, including the risks
inherent in our industry, the challenging capital markets and other
risks identified by us in our periodic filings on SEDAR (which can
be viewed at www.sedar.com). Any of these risks could cause our or
our industry's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements.
While these forward-looking statements and any assumptions upon
which they are based are made in good faith and reflect our current
judgment regarding the direction of its business, actual results
will almost always vary, sometimes materially, from any estimates,
predictions, projections, assumptions or other future performance
suggested in this press release. Except as required by applicable
law, including the securities laws of Canada, we do not intend to
update any of the forward-looking statements to conform these
statements to actual results.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Sierra Geothermal Power Corp. Gary Thompson President
& CEO (604) 683-0332 / 1-800-563-5631 info@sierrageopower.com
Sierra Geothermal Power Corp. Anthony Srdanovic Investor Relations
(604) 642-6179 asrdanovic@sierrageopower.com
www.sierrageopower.com
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