U.S. Department of Energy Albuquerque Operations Office Geothermal Resource Exploration and Definition

GRED Program Geothermal Resource Exploration & Definition  Program Management Team Dan Sanchez, DOE/AL Ed Hoover, SNL Norm Warpinski, SNL Allan Sattler, SNL Ray Fortuna, DOE/HQ  Funding $900,000 — FY00 $2,000,000 — FY01 $1,775,000 — FY02 $3,500,000 — FY03 (YTD) TBD — FY04

GRED Program Geothermal Resource Exploration & Definition  Goals and Objectives –Develop collaborative efforts to support the exploration for and definition of new geothermal resources Mitigate The Initial Risk Of Confirming A Reservoir Encourage Geographic Diversity –Effect an increase in the electrical power generated from geothermal energy Overall Generating Capacity Number Of States  EE-2C Program Area –Exploration and Drilling

GRED Program Geothermal Resource Exploration & Definition  Program Approach –Geographic Diversity Focus GRED –New States, New Fields, Extensions GRED II –New States, New Fields –Promote As Many Awards As Possible Require Slim-Hole Drilling –DOE Cooperative Agreements Preferred Contractual Instrument Flexibility

GRED Program Geothermal Resource Exploration & Definition  Scope of Work –Phase I Exploration Work To Site A Test Well –Geologic Studies, Geophysics, Geothermometry –Phase II Slim-Hole Drilling –Logging, Core, Short Tests –Phase III Well Testing & Reservoir Assessment

GeophysicsDrilling TestingAssessment Phase III : Testing of the well for reservoir qualities, flow capacity & thermal characteristics Rye Patch Testing Phase II : Drilling of a test well to access the reservoir and evaluate geologic features Phase I : Exploration geophysics to determine optimum location for a test well Potential of the new resource to provide geothermal power Lightning Dock Temperature Contours Fourmile Hill Temperature Logs (454° Max) Steamboat Hills Velocity Model GRED Science and Engineering Areas

Lightning Dock Cove Fort/Sulphurdale Blue Mountain Rye Patch Steamboat U-boat Fourmile Hill Rye PatchPresco Energy, LLC Blue Mt.Noramex Corp. Cove FortUtah Municipal Power Agency Fourmile HillCalpine Siskiyou Geothermal Partners SteamboatSB Geo, Inc. U-BoatCoso Operating Unit (Caithness) Lightning DockLightning Dock Geothermal, Inc. NVUTCANM GRED I – Site Locations

GRED I Program Geothermal Resource Exploration & Definition  Rye Patch – Presco Energy, LLC Completed Phase II & III –Accomplishments Well Drilled To 643 m –Intermediate Limestone Target –Polyurethane Foam Treatment Successful Flow Testing –~ 6 Hour Test »150°C Fluid »2,000,000 lb/hour

GRED I Program Geothermal Resource Exploration & Definition  Steamboat –S.B. Geo, Inc. Completed Phase II & III –Accomplishments 2 Wells Drilled –610 m »Cored From 235 m to TD –297 m »Cored From 152 m to TD Temperatures Comparable To Other Nearby Wells Testing Recently Completed

GRED I Program Geothermal Resource Exploration & Definition  Blue Mountain –Noramex Corp. Completed Phase II Beginning Phase III –Accomplishments Successfully Drilled 650m Well 150° C Temperature

GRED I Program Geothermal Resource Exploration & Definition  Fourmile Hill – Calpine Corporation Completed Phase I – Accomplishments Temperature Gradient Well Completed –1346 m Depth –230°C Maximum Temperature – Phase II Work Ongoing Fourmile Hill Temperature Survey

GRED I Program Geothermal Resource Exploration & Definition  Cove Fort/Sulphurdale – Utah Municipal Power Agency Completed Phase I & II – Accomplishments Magnetic & Resisitivity Surveys Completed –Several Possible Targets Well Drilled To 598 m –157° C Temperature Complicated Geologic Structure

GRED I Program Geothermal Resource Exploration & Definition  Lightning Dock – Lightning Dock, Inc. Completed Phase I Beginning Phase II –Accomplishments Completed Geophysical Surveys –Aeromagnetic –Gravity –Resistivity –Seismic Targeting Well Site In Complex Structural Environment Lightning Dock Gravity & Magnetic Survey Results

GRED I Program Geothermal Resource Exploration & Definition  U-Boat – Coso Operating Unit Completed Phase I –Accomplishments Completed Geophysical Surveys –Gravity –Microseismic –Seismic No Phase II Planned MEQ Seismic Gravity

GRED II Program Geothermal Resource Exploration & Definition  Second Round Program (GRED II) –Focus On Non-Producing Sites –Solicitation issued, April 2002 –Solicitation closed, June 2002 –Financial Assistance Awards, September 2002 –7 Successful Projects 5 States All Non-Producing Sites

GRED II – Site Locations Animas Valley, NM Raft River, ID San Francisco Mt., AZ Arnica Sink, CA Truckhaven, CA Blue Mt, NV Fly Ranch, NV AZ CA ID NM NV

GRED Program Geothermal Resource Exploration & Definition  Conclusions –Successful GRED I Program Is Nearly Complete 7 Projects Funded (4 States) 5 Projects Should Progress Through Phase III Significant Potential In These 5 Sites –GRED II Initiated 7 New Projects Funded (5 States) –Overall Program Is Successfully Encouraging New Exploration & Reservoir Confirmation