Geothermal Energy Technology and International Development Forum ThermaSource, Inc.: A Drilling Point of View Louis Capuano, Jr Chief Executive Officer ThermaSource, Inc. Overview • Brief Company Introduction • Discuss the Importance of Project Development • How ThermaSource fits into the development phase • How to drill the different phases Who We Are ThermaSource History • ThermaSource was founded in 1979, in Northern California (near The Geysers) • For over 30 years, ThermaSource has positioned itself as the geothermal drilling services leader. What We Do Since its inception over 30 years ago, ThermaSource has been primarily focused on and committed to one industry – geothermal drilling. With a management team representing over 100 years of experience in all forms of geothermal resource drilling, ThermaSource has emerged as a worldwide industry leader for engineering, drilling contracting, and drilling services. Our focus is on our customers and their challenges, specifically working with them to manage risks, reduce costs, and increase the probability of successful geothermal wells. ThermaSource, LLC ThermaSource, Inc. ThermaSource Cementing, Inc Tecton Geologic, LLC Drilling Rigs, Engineering and Consulting, Experienced Personnel Complete, Geothermal Cementing Services Well/Mud Logging and H2S Abatement ThermaSource Inc. ThermaSource, Inc. provides the following services: • Project Management • Drilling Engineering • Drill Rig Operations • Resource Assessment • Field Supervision • Geothermal Economics • Well Testing ThermaSource, Inc. ThermaSource Cementing, Inc. • A variety of site bulk storage and delivery for any customer needs • Fully dedicated 24-hour lab and engineering staff for cement slurry formation and testing. • Cement placement and quality assurance and control • Cutting edge cement chemistry technology • Custom cement systems • State-of-the-art bulk cement blending facility • Foam Cement services • Latex Cementing technology and services ThermaSource Cementing, Inc. Tecton Geologic, LLC • Tecton Geologic, LLC provides on-site rig monitoring as well logging and data collection for the geothermal drilling industry. • Tecton Geologic’s geologists are on-site twenty-four hours a day, available to monitor all situations and prepare an up-todate accurate lithologic well logs. • Tecton Geologic provides additional services, such as: – hydrogen sulfide detection equipment that calculates chemicals needed for abatement based on H2S present and then the actual abatement to help meet air quality regulations – Well test monitoring and data collection Tecton Geologic, LLC Project Development to Drilling a Well Project Development • Development of a new geothermal project may require one or all of the following stages: 1. Geologic/Geophysical exploration 2. Gradient Hole Drilling 3. Slim Hole Drilling A. Well Test and Evaluation 4. Exploration Well Drilling and Evaluation 5. Production and Injection Well Drilling, Completion and Testing. ThermaSource Assists Project Development in providing: 1) 2) 3) 4) 5) 6) 7) 8) Effective well planning and cost estimating Drilling engineering Project management Project execution Drilling rig operations Cement engineering and services Mud logging services Well testing and project evaluation Three Types of Geothermal Wells Gradient hole development Slim hole drilling Large diameter, exploration, production well drilling 300 ft. to 1,000 ft. Temperature Gradient Well 1,000ft. TGH Avg. Well Cost $150K to $200K Purpose of Temperature/Gradient Wells • Measure area heat flow • Analyze the lithology • Sub-surface exploration 2,000 ft. to 4,000 ft. Slim Hole 3,000 ft. Slim Avg. Well Cost $1M to $1.5M Purpose of Slim Hole Wells • Necessary to examine additional formations, looking for potential troublesome formations, lost circulations, or production potential. • Measure temperatures at greater depths • Casing program insight 5,000 ft. to 8,000 ft. or Deeper Exploration/ Production Well 8,000 ft. Well Avg. Well Cost $3.5M to $4M Purpose of Production/Injection Wells • Get well productivity per well which means more MW’s online. • Re-inject used water or brine • All wells are to be designed to be a safe, long term operational link to the reservoir. Conclusion • Better up front planning makes for more successful and economically efficient drilled wells. • Good exploration methods can reduce the number of wells needed, better economies of scale for the overall project. • Experience Counts!