Magma Energy completes two additional drill holes at Soda Lake

Alexander Richter 22 Ağu 2009

Magma Energy Corp. (TSX:MXY) announces that it “has completed two drill holes at its Soda Lake geothermal operation in Nevada to depths of 4,468 feet and 8,995 feet respectively.

The wells were drilled to provide further information regarding the distribution of heat and permeability of the reservoir as part of the Company’s plans to double Soda Lake’s gross generating capacity from 11 megawatts to 23 megawatts.

Maximum temperatures in the wells were 395 degrees F and 405 degrees F respectively, making the holes the hottest ever recorded within the Soda Lake geothermal field, however initial indications of fluid permeability appear more limited than expected. The Company is utilizing data from all wells drilled to date at Soda Lake to determine whether the new wells will be sufficient for planned expansion. This work will include an optimization review of the current production and reinjection strategy.

In addition to drilling activities, Magma has completed a detailed engineering assessment of power plant upgrades and refurbishments that are required in anticipation of the new production wells. Construction awards have been issued for improvements to the existing cooling tower, well-field piping and electrical system upgrades as well as the refurbishment of existing power generating equipment. All plant refurbishment activities are on track for completion by the end of 2009.”

Source: Company release via PR Canada