U.S. Geothermal (formerly US Cobalt Inc.), a renewable energy company, announced February 28th that the Oregon Department of Geology and Mineral Industries (DOGAMI) has issued a drilling permit for the first full size exploration well at the Neal Hot Springs Project located in eastern Oregon.
The recent exploration well is granted permission for depth of 3,500 feet and with the probable occurrence in further development for a geothermal resource discovery made by Chevron Resources in 1979. The surface release of Neal Hot Springs was sampled and showed possible temperature source of approximately 330 degrees F (ranging from 311 to 347 degrees F).
Daniel Kunz, President and CEO commented, “Neal Hot Springs provides an excellent target for us, and is consistent with our corporate focus of reducing risk by taking on projects that have a discovery. We anticipate drilling the well during the second quarter of the year, once a drill is contracted and site preparation is complete.”
Completed December 2007 is a water supply well to support the drilling operation. Construction of the access road, drill pad and test pond is scheduled to commence within the next 15 days, and drilling operations are expected to start within the next month or two. After the well is completed, flow testing and reservoir engineering will commence. The temperature and flow results from the well could be available as early as the end of the second quarter.
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