GeothermEx Report Supports Increased Mega-Watt Capacity
for the Initial Blue Mountain Geothermal Power Plant
VANCOUVER, B.C. (April 24, 2008) -- Nevada Geothermal Power Inc. (NGP) (TSX-V:
NGP, OTC-BB: NGLPF) today announced that an updated Status Report of Resource
Development at the Blue Mountain Geothermal Project, Humboldt, County Nevada dated
April 21, 2008 has been released by GeothermEx, Inc. The report gives a new estimate of
the MW capacity of the resource, results of production well testing, and the review of the
proposed injection strategy for the project.
The MW capacity of the Blue Mountain resource is now estimated to have a minimum value
of 40 MW net (90% probability) and a most-likely value of 57 MW net. The analysis
indicates sufficient heat in place to support NGP’s larger development of the 49.5 MW
gross (38.8 MW net) geothermal power plant.
“Resource drilling at Blue Mountain has indicated a larger and more prolific resource than
originally anticipated. Consequently, the Blue Mountain project has been increased in size
from 37.5 MW (gross) to 49.5 MW (gross). The larger plant will result in increased
revenues to NGP.
The GeothermEx report provides documentation about the Blue Mountain geothermal
resource in support of the construction financing for the project. The Morgan
Stanley/Glitnir project financing, expected to close shortly, has been increased from
US$100 million to US$140 million. Consequently, NGP is required to contribute additional
equity funds in order to maintain its portion of contributed equity and to cover
contingencies,” stated Brian Fairbank, President & CEO of Nevada Geothermal Power Inc.
Highlights from the GeothermEx, Inc. report:
· As of the end for March 2008, NGP’s drilling at Blue Mountain has included 14
temperature-gradient wells, two deep slim holes, and five full-diameter wells
(production test wells). Three of the full-diameter wells have demonstrated high
productivity in well tests.