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Dear Investor,
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February 2, 2009
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Nevada Geothermal Power Inc.
Update on Blue Mountain 'Faulkner 1'
Geothermal Power Plant Construction
First Major Power Plant Components Delivered
VANCOUVER,
B.C. (February 2, 2009) - Nevada Geothermal Power Inc. (NGP) (TSX-V: NGP,
OTC-BB: NGLPF)
today provided an update on the construction activities at its Blue
Mountain geothermal power project. Blue Mountain's 'Faulkner 1'
includes the construction and operation of a 49.5 MW (gross) binary cycle
geothermal power plant.
"NGP
is on track to successfully develop the 'Faulkner I' geothermal power plant
at Blue Mountain. NGP is accomplishing landmark milestones and
realizing our objective of becoming a significant and profitable geothermal
power producer," stated Brian Fairbank, President and CEO of Nevada
Geothermal Power Inc.
The power
plant construction under an Engineering Procurement Construction contract
with Ormat Nevada Inc., a subsidiary of Ormat Technologies Inc., (NYSE:ORA)
is proceeding on schedule and within budget with the following status
report:
. All
foundations for the power plant equipment and the cooling tower are
complete;
. Switch yard and piping foundations are underway;
. Cooling tower is under construction;
. Access road improvements are complete;
. Electrical system, plant control, maintenance, administration
office building is under construction;
. On January 22, 2009, Ormat delivered first components for the power
plant, including isopentane storage tank, condensers and diffusers for the
three Ormat Energy Converters (OEC's).
To view
the progress of construction and equipment arrival at Blue Mountain, please
click on link below:
http://www.nevadageothermal.com/i/PhotoGallery/BMNov-Jan2009/slideshow.html
or go to our website: http://www.nevadageothermal.com/
and click on the Gallery section.
Results
of the injection drilling program have identified a significant injection
area west of the Blue Mountain production zone. Well 58 15 can be used
either as a producer or as an injector and the decision has been made to
use it as an injector. Well 58A-15 has also been tested and
determined to be a significant injector. Well 57-15 in the west, was
tested for shallow injection, which was not indicated; the drilling was
suspended above the potential deep production/injection zone due to the depth
limitations of the smaller drill rig. Two or three more injection
wells are planned in the western injection area.
Elsewhere
on the property, Well 89-11 in the east, encountered some permeability and
will continue to be accessed for injection in conjunction with DB-2
(exploratory well completed on April 28, 2004). Well 13-11 in the
north of the production zone, was not found to be suitable for
injection.
The
current objectives of the drill program are to complete three production
wells in the core production area, two of which are being currently drilled
(Well 14-14 and Well 17-14). Well 14-14 has intersected a strong
production zone (193�C/380�F) and is being setup for testing.
Reservoir temperatures for Wells 14-14 and previously completed 58-15 are higher
than those utilized in the project base model. The geothermal well
field is progressing smoothly with ThermaSource and Ensign drill rigs
working simultaneously to complete the well field by the end of April
2009.
In
addition, Wilson Utility Construction Company has completed transmission
line engineering, the sourcing of conductors and power poles.
Construction on the 21-mile power transmission line that connects the
'Faulkner 1' power plant to the NV Energy substation in Mill City will begin
in the middle of February, with a completion date at the end of May 2009.
NGP has
hired Mark Kolar as Manager of Operations, responsible for the overall
operations of the 'Faulkner 1' geothermal power plant at Blue
Mountain.
Mr. Kolar has over 19 years of geothermal operation experience at Coso's
geothermal project in California. NGP is in the process of hiring
additional plant operations staff.
Project
financing for the completion of the 'Faulkner 1' geothermal power plant at
Blue Mountain was secured with TCW Asset Management in August 2008, and NGP
continues to draw funds. NGP is within budget for completion of the
'Faulkner 1' geothermal power plant.
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 200 MW from the
current leaseholds.
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Nevada
Geothermal Power Inc.
Brian D. Fairbank, P. Eng.
President & CEO
http://www.nevadageothermal.com/
Investor
Inquiries
Shelley Kirk,
Telephone: 604-638-8784
Toll Free: 866-688-0808 X118
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.
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