Location and Size

The Reese River project spans 25 km2 (6145 acres) in Lander County, Nevada and is located 43 km (27 miles) north of Austin and 322 km (200 miles) east of Reno. The project has been independently rated as one of the top undeveloped geothermal prospects in Nevada.

Exploration Activities

Highlights of the exploration work completed to date include a total of 57 wells ranging from 100 meters to 1524 meters (328 to 5000 feet) in depth with recorded temperatures up to 150ºC (302ºF). Temperature data shows a large thermal anomaly that is approximately 10 km (6 miles) long in the northeast direction by approximately 3 km (2 miles) wide. Temperature gradients measured in this area reach a maximum of approximately 500° Celsius per kilometer which is more than 15 times higher than average temperature gradients found in the Earth’s crust. Geophysical surveys completed to date include seismic, gravity, magnetotelluric and radiometric surveys. Geological and structural mapping has been completed and geochemical analyses were undertaken on soil, water, rock and vegetation.

In 2008, significant development stage planning was undertaken for the Reese River property, with major environmental surveys completed. An Environmental Assessment was approved by the BLM in 2007. The Project is drill-ready and plans are being made to advance the project to bankable feasibility.

SGP has ongoing assessments of the Long Term Interconnection Agreement with NV Energy for the project and continue to look at power purchase agreement options.

In November 2009, SGP completed a program of 10 shallow exploration holes with a total of 2,140 meters drilled at Reese River. While analysis of the drill results remains to be completed, an initial review confirms that the size of the known thermal anomaly at Reese River is greater than previously disclosed.

A team of geologists from the University of Nevada, Reno is working with SGP to build a structural model of the subsurface that should be completed in early 2010. The structural model, combined with all of the previous data, will be used for targeting the next drill locations.

 

Resource Estimate

In June 2008,  the results released from GeothermEx independent technical report indicate that the resource estimates on the Reese River project have a 90% probability (confidence level) of the resource generating at least 26 MW for 20 years and a 50% probability that the reserve can support a plant of at least 58 MW. A 26 MW geothermal power plant can provide power to about 21,000 homes.

Production

The Reese River project is targeted for production and power generation in 2013.