Geothermal Energy Technology and International Development Forum

ThermaSource, Inc.: A Drilling Point of View

Louis Capuano, JrLouis Capuano, JrChief Executive OfficerChief Executive Officer

ThermaSource, Inc.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.

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-to-date 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 exploration2. Gradient Hole Drilling3. Slim Hole Drilling

A. Well Test and Evaluation4. Exploration Well Drilling and Evaluation5. Production and Injection Well Drilling, Completion and

Testing.

ThermaSource Assists Project Development in providing:

1) Effective well planning and cost estimating2) Drilling engineering3) Project management4) Project execution5) Drilling rig operations6) Cement engineering and services7) Mud logging services8) Well testing and project evaluation

Three Types of Geothermal WellsGradient hole development

Slim hole drillingLarge diameter, exploration, production well drilling

300 ft. to 1,000 ft. Temperature Gradient Well

1,000ft. TGHAvg. 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 Hole3,000 ft. SlimAvg. 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. WellAvg. 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!