Neal Springs Geothermal Project Update - Third Prolific Well Successfully Drilled

U.S. Geothermal, Inc. subsidiary, USG Oregon LLC, recently announced the successful drilling and testing of NHS-8 [pdf], the third production well at the Neal Springs Geothermal Project in eastern Oregon.

Reaching the underground reservoir at roughly 3,600 feet, the new well was tested with an artesian pressure of 2,770 gallons per minute (gpm) with a production temperature of 287.5 F. 

Commercially viable geothermal energy output requires an artesian pressure anywhere between 2,000-3,000 gpm and a temperature of at least 286 F, so NHS-8 is sitting high in U.S. Geothermal's books.  

“Well NHS-8 has the highest temperature and artesian flow rate of any well drilled at Neal Hot Springs. This is a great well. With the upcoming completion of well NHS-2 we may have all production needed for the 23 net megawatt (“MW”) project. We will now turn our attention to injection strategy”, said Daniel Kunz, President and CEO.

And injection strategies are no simple task. Injecting water into mainly vapor-dominated reservoirs can dramatically increase pressure [pdf] -- something often associated as the cause of seismic activity at the surface. However, with little obstacles or negative outcomes to their work, USG Oregon LLC remains optimistic -- and busy. 

Two other production wells, NHS-1 and NHS-5, are also producing within the required threshold, and with a fourth well (NHS-2) nearing completion, the well-funded Neal Springs Geothermal Project should easily meet its total required production wells for its 23 net MW output.

Neal Springs is U.S. Geothermal's (TSE: GTH) third major project. The geothermal company holds rights to approximately 69,500 acres of land, encompassing six advanced-stage geothermal development projects, including Raft River and San Emidio. 

Image credit: TreeHugger

Learn more about Geothermal Power on eBoom's Geothermal Energy Learning Page.