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

Nevada Geothermal Power Inc.

October 18, 2006 09:15 ET

Nevada Geothermal Power's Well 26A-14 at Blue Mountain

Heralds Major Geothermal Reservoir Discovery

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2006) - Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF) is pleased to announce that it has recently completed production testing of its first full-diameter production well in the Blue Mountain geothermal field, Humboldt County, Nevada.

According to the Company's reservoir engineering consultant, Susan Petty of Black Mountain Technology, the well test indicates that Blue Mountain is "...a major new geothermal discovery". GeothermEx, Inc., who oversaw the test program and conducted an independent engineering analysis, calls 26A-14 a "very prolific well".

Based on the data collected, GeothermEx, Inc. concluded that the productivity index ("PI") of 26A-14 "...exceeds 20gpm/psi, a high PI value indicative of a very prolific well". Using conventional pumping technology, the well would produce over 9.6 MW (gross) or approximately 7MW (net), allowing for 27% parasitic load for the combination of the production pump, appropriate share of a hypothetical binary plant and injection pumps.

Well 26A-14 was tested for 60 hours including approximately 48 hours of full-open flow. The well flowed unassisted at rates over 295 tonnes/hr (650,000 lb/hr) with enthalpy indicating a reservoir temperature of over 185 degrees C (365 degrees F). The temperatures are the highest yet encountered at Blue Mountain and temperatures are still increasing at the bottom of the well at 858 metres (2815 feet). Following the flow test the well head pressure returned to the original pre-test shut in pressure within 24 hours which has positive implications for the overall size of the resource and the reservoir capacity.

NGP considers that test results from 26A-14, combined with geochemical analysis of geothermal brine produced from well DB-2 which predict up to 240 degrees C (460 degrees F) reservoir temperatures, show that high temperatures to support a flash turbine development may occur within 500- 1200 metres (1600-4000 feet) of surface. Field crews are currently drilling the second production test well (38-14) where 20-inch cemented casing was previously installed. Following the completion and testing of 38-14, the drilling and development strategy will be reviewed in light of the higher temperature potential.

Despite drilling delays, NGP is on track with resource development for the initial 35 MW power contract signed with Nevada Power Company, a subsidiary of Sierra Pacific Resources (see News Release August 9, 2006). The first well took longer than anticipated due to drill equipment problems and complexities involved with controlled drilling through the production zone.

"We are very encouraged with the results from 26A-14. The Company now believes that the reservoir capacity is much greater than 50 MW. Furthermore the temperatures encountered are the highest yet measured in the Blue Mountain geothermal field and lead to the possibility of power production utilizing efficient flash turbine technology with lower costs," stated Brian Fairbank, CEO & President.

About Nevada Geothermal Power Inc.

Nevada Geothermal Power Inc. is a renewable energy company exploring and 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 the Blue Mountain, Pumpernickel, Black Warrior projects in Nevada and the Crump Geyser Project in southern Oregon.

Nevada Geothermal Power Inc.

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

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