EGS DEMONSTRATION AT NEWBERRY VOLCANO, OREGON

AltaRock Energy Inc., in association with Davenport Newberry Holdings LLC, has begun the first phase of an Enhanced Geothermal System (“EGS”) demonstration at the Newberry Volcano in central Oregon. Newberry is one of the largest Quaternary volcanoes in the United States. Four deep, very low permeability, very hot (T>310°C) production-size wells have been completed on the northwest flank of this massive shield volcano. The Newberry demonstration site provides unparalleled EGS potential, with a large, high-temperature, conductive thermal anomaly yielding wells with permeability orders of magnitude less than necessary for conventional hydrothermal development.

An existing well will be stimulated using experimental hydraulic, mechanical and chemical techniques, aided by innovative zonal isolation methods. The resulting EGS reservoir will be mapped using microseismic methods to delineate production well targets and elucidate reservoir geometry. A variety of single-well test methods will be used to characterize the stimulated fracture heat exchange area and fluid pathways. In order to develop a stimulation plan, the multi-disciplinary research team has initiated characterization of the geomechanical, geochemical, geothermal and seismic regime of the project well and site. Well cuttings from the injection well, and core from nearby holes, are being mechanically and chemically analyzed. A seismic array has been deployed around the injection well and velocity calibration shots performed. Additional regional seismic stations are being installed to provide better coverage of natural and induced microseismicity. An induced seismicity hazard and risk analysis will be completed to ensure that the demonstration can be conducted safely.

The Newberry Volcano EGS Demonstration will allow geothermal industry and academic experts to develop, validate and enhance geoscience and engineering techniques, and other procedures essential to the expansion of EGS throughout the country. Successful development will demonstrate to the American public that EGS can play a significant role in reducing foreign energy dependence, and potentially provide clean, renewable, baseload geothermal power generation in the State of Oregon.