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– – Electricity Production – Electricity Production – West TexasWest Texas

A Presentation To The:New Mexico Geothermal Energy Working Group New Mexico Geothermal Energy Working Group

Tuesday, May 13, 2008

Santa Fe, NM

Dr. Richard J. Erdlac, Jr.Dr. Richard J. Erdlac, Jr.

Energy America, Inc.Energy America, Inc.

Energy America Geothermal, Energy America Geothermal, LLCLLC

Midland, TexasMidland, Texas

An Example For An Example For New MexicoNew Mexico

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Energy America Inc.Energy America Geothermal, LLC

Trading & Supply

GEOEXCHANGEPOWER

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Presentation OverviewPresentation Overview

1) New Mexico sits astride a 1) New Mexico sits astride a high near surface heat flow high near surface heat flow trend that stretches from trend that stretches from Colorado south to the Colorado south to the Mexican border.Mexican border.

2) New Mexico is part of a 2) New Mexico is part of a broad trend of states with broad trend of states with deeper oil and gas wells that deeper oil and gas wells that extends from the Gulf Coast extends from the Gulf Coast NNW to Montana.NNW to Montana.3) West Texas Permian Basin 3) West Texas Permian Basin

geothermal investigations geothermal investigations suggest that parts of New suggest that parts of New Mexico may also have Mexico may also have geothermal power potential geothermal power potential from deeper oil and gas wells.from deeper oil and gas wells.

4) Trans-Pecos region of West 4) Trans-Pecos region of West Texas has promise of Texas has promise of geothermal power as part of geothermal power as part of the Rio Grande Rift, stretching the Rio Grande Rift, stretching from the Big Bend of Texas from the Big Bend of Texas through New Mexico and into through New Mexico and into Colorado.Colorado.5) Geothermal energy may 5) Geothermal energy may

have the highest capacity have the highest capacity factor of all the renewable factor of all the renewable energy resources available energy resources available for power generation.for power generation.

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Existing geothermal power Existing geothermal power generation has focused on generation has focused on western states where high western states where high

heat flow exists at or near the heat flow exists at or near the Earth’s surface.Earth’s surface.

Geothermal For Electrical ProductionGeothermal For Electrical Production

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Subsurface BHT Data – AAPG / USGSSubsurface BHT Data – AAPG / USGS

New opportunity exists through the many oil and New opportunity exists through the many oil and

gas wells that have been drilled in the deeper gas wells that have been drilled in the deeper

sedimentary basins that have encountered hot sedimentary basins that have encountered hot

temperatures.temperatures.

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New opportunity exists through the many oil and New opportunity exists through the many oil and

gas wells that have been drilled in the deeper gas wells that have been drilled in the deeper

sedimentary basins that have encountered hot sedimentary basins that have encountered hot

temperatures.temperatures.

Subsurface BHT Data – AAPG / USGSSubsurface BHT Data – AAPG / USGS

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Subsurface BHT Data – AAPG / USGSSubsurface BHT Data – AAPG / USGS

Delaware & Val Verde Basins

Blue = 151 to 178oF (66 to 81oC)

Green = 179 to 288oF (82 to 142oC)

Red = > 289oF (> 143oC)

Dark Gray Area = 302Dark Gray Area = 302ooF (150F (150ooC) IsothermC) Isotherm

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Subsurface BHT Data – Gulf Oil – 1982Subsurface BHT Data – Gulf Oil – 1982

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GDS Well Data BaseGDS Well Data Base

GDS – 321,000 Wells & Locations GDS – 321,000 Wells & Locations May 2004May 2004

GDS – 44,525 Wells & Locations GDS – 44,525 Wells & Locations May 2004May 2004

0 to 4,999 Feet0 to 4,999 Feet

33,481 Wells & Locations33,481 Wells & Locations12,000 to 30,000 Feet12,000 to 30,000 Feet

2,242 Wells & Locations2,242 Wells & Locations5,000 to 11,999 Feet5,000 to 11,999 Feet

8,802 Wells & Locations8,802 Wells & Locations

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Delaware – Val Verde Basin BHT DataDelaware – Val Verde Basin BHT Data

RRSS22RRDD

22 Maximized Maximized

RRSS22RRDD

22 Maximized Maximized

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Delaware – Val Verde Basin BHT DataDelaware – Val Verde Basin BHT Data

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Delaware – Val Verde Basin BHT DataDelaware – Val Verde Basin BHT Data

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Delaware – Val Verde Basin BHT DataDelaware – Val Verde Basin BHT Data

At 200At 200ooC : C :

Pecos dT/dZ = 58.8Pecos dT/dZ = 58.8ooCC

At 200At 200ooC : C :

Gomez dT/dZ = 49.8Gomez dT/dZ = 49.8ooCC

At 200At 200ooC : C :

Puckett dT/dZ = 75.0Puckett dT/dZ = 75.0ooCC

At 200At 200ooC : C :

Grey Ranch dT/dZ = 50.0Grey Ranch dT/dZ = 50.0ooCC

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Impact On New MexicoImpact On New Mexico

San Juan BasinSan Juan Basin

Blue = 151 to 178oF (66 to 81oC)

Green = 179 to 288oF (82 to 142oC)

Red = > 289oF (> 143oC)

Permian BasinPermian Basin

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Trans Pecos, Texas – Rio Grande RiftTrans Pecos, Texas – Rio Grande Rift

Heat Flux

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Trans Pecos, Texas – Rio Grande RiftTrans Pecos, Texas – Rio Grande Rift

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Trans Pecos, Texas – Rio Grande RiftTrans Pecos, Texas – Rio Grande Rift

2.753oC/100m

Below threshold jump.

The points defining well gradients were plotted as t-d values (right), with purple and blue values combined representing all The points defining well gradients were plotted as t-d values (right), with purple and blue values combined representing all of the BHT records and with blue values alone representing t-d points below the 2.753of the BHT records and with blue values alone representing t-d points below the 2.753ooC/100m threshold change.C/100m threshold change.

All points.

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Impact On New MexicoImpact On New Mexico

Estimated Temperature at 4 KM

Sedimentary Thickness – Contour Interval 1500 m

Idaho Nat Lab Geothermal Technologies Program

& Idaho Nat Lab Geospatial Sci & Eng

Rio Grande

Rift

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A major importance of A major importance of geothermal geothermal power production is that it has a power production is that it has a high high capacity factor.capacity factor. Thus geothermal impacts base Thus geothermal impacts base load load electrical demand.electrical demand.

Geothermal Energy Geothermal Energy Association,Association,West Coast Geothermal West Coast Geothermal Finance Finance & Development Workshop, & Development Workshop, May 2007May 2007

Importance Of Geothermal PowerImportance Of Geothermal Power

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ConclusionsConclusions

New Mexico sits astride a high near surface heat flow New Mexico sits astride a high near surface heat flow trend that stretches from Colorado south to the Mexican trend that stretches from Colorado south to the Mexican border.border. New Mexico is part of a broad trend of states with New Mexico is part of a broad trend of states with deeper oil and gas wells that extends from the Gulf Coast deeper oil and gas wells that extends from the Gulf Coast NNW to Montana.NNW to Montana. West Texas Permian Basin geothermal investigations West Texas Permian Basin geothermal investigations suggest that parts of New Mexico may also have suggest that parts of New Mexico may also have geothermal power potential from deeper oil and gas geothermal power potential from deeper oil and gas wells.wells.Trans-Pecos region of West Texas has promise of Trans-Pecos region of West Texas has promise of geothermal power as part of the Rio Grande Rift, geothermal power as part of the Rio Grande Rift, stretching from the Big Bend of Texas through New stretching from the Big Bend of Texas through New Mexico and into Colorado.Mexico and into Colorado. Geothermal energy may have the highest capacity Geothermal energy may have the highest capacity factor of all the renewable energy resources available for factor of all the renewable energy resources available for power generation.power generation.