Nevada Geothermal Power Inc.
TSX VENTURE : NGP
OTC Bulletin Board : NGLPF

Nevada Geothermal Power Inc.

October 19, 2007 09:15 ET

Nevada Geothermal Power Inc.: Well 23-14 Rated at 10 MW Gross Capacity

Heralds New Phase of Development for Blue Mountain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 19, 2007) - Nevada Geothermal Power Inc. ("NGP") (TSX VENTURE:NGP)(OTCBB:NGLPF), today announced that positive flow-test results from Well 23-14 exceeded expectations and set the stage for the long term development of an important new geothermal field in Northern Nevada.

Flow testing of 23-14 was done under the supervision of GeothermEx, Inc. ("GeothermEx") an independent consultant based in Richmond California. GeothermEx, reports that:

- Well 23-14 produced roughly 700,000 lb/hr fully open equivalent to a volumetric flow rate of 1,590 gpm (100 l/s) at a wellhead pressure of about 100 psig (690kPa).

- The maximum temperature measured in the flowing survey was slightly more than 375 degrees F (190 degrees C) at 3,250-3,300 feet depth (990 metres to 1006 metres).

- Using the measured pressure drawdown and the total flow rate, a productivity index of 7.1 gpm/psi is calculated, indicating good productivity.

- The well can be pumped using a conventional line-shaft pump to maximize its power output. Assuming a flow of 2,500 gpm (160 l/s) under pump, the gross power potential of 23-14 is 10 MW and the net output would be about 7.5 MW, accounting for parasitic load for the combination of the production pump in the well and the well's proportionate share of a hypothetical binary plant and injection pumps.

Well 23-14 was completed to a depth of 3,415 feet (1041 metres). The well was flowed for 46 hours, including 28 hours of full flow, over September 26-28, 2007. The principal production zones indicated by spinner surveys are located below 3,300 feet depth (1006 metres), with one major zone near 3,310 feet (1009 metres) depth and a second near 3380 feet (1030 metres).

Nevada Geothermal has established the geothermal resource necessary to deliver renewable power under its existing Power Purchase Agreement with the Nevada Power Company. The Company will complete turbine equipment specifications, select an Engineer Procure Construction (EPC) contractor, and obtain remaining permits for construction of the power plant, well field and transmission line interconnection. Bridge Financing and Construction Financing has been arranged through Morgan Stanley and Glitnir Bank (see news releases dated July 26 and August 1, 2007).

Mr. Fairbank, President of Nevada Geothermal, stated, "These wells are highly productive and we believe they are connected to a larger near-surface, high temperature geothermal resource than was first apparent. We believe that the Blue Mountain geothermal reservoir will support the development of a further 30-60 MW and perhaps more. The first 30 MW power plant to be known as the Faulkner I is projected to be on line at the end of 2009."

Nevada Geothermal is pleased with the result of the three well reservoir production test program and the information collected will allow the Company to complete turbine equipment specifications, selection of an Engineer Procure Construction (EPC) contractor, and process the remaining permits for construction of the power plant, well field and transmission line interconnection.

To view the photograph accompanying this release please click on the following link: http://www.ccnmatthews.com/docs/ngp1019.pdf

About Nevada Geothermal Power Inc.:

Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all located in Nevada and Crump Geyser in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of approximately 150 MW to over 200 MW from the current leaseholds.

Nevada Geothermal Power Inc.

Brian D. Fairbank, P. Eng., President & CEO

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.

This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nevada Geothermal Power Inc.
    Shelley Kirk
    Investor Inquiries
    (604) 688-1553 X118 or Toll Free: 1-866-688-0808 X118
    Email: sfkirk@nevadageothermal.com
    Website: www.nevadageothermal.com
    or
    Pro-Edge Consultants Inc.
    Tracy Weslosky
    Managing Partner
    (416) 581-0177 or Toll Free: 1-866-544-9622
    or
    Pro-Edge Consultants Inc.
    Fred Cowans
    Managing Partner
    (416) 581-0177 or Toll Free: 1-866-544-9622
    Email: info@pro-edge.com
    Website: www.pro-edge.com