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13 February 2007 -- Sierra Geothermal Power Corp. reported that drilling has commenced at the company's Reese River Project, Lander County, Nev. The objective of the well is to test geothermal reservoir characteristics. The drilling program is operated by Sierra Geothermal's U.S. subsidiary, with partial funding of $580,000 by the U.S. Department of Energy's GRED III program.

Sierra Geothermal said the potential geothermal resource at Reese River was estimated to have a 90 percent probability of generating 13 MW and a 50 percent probability of exceeding 30 MW.

The company praised recent legislation in California that will have a positive effect on its projects located near the California-Nevada border. In other good news for the company, Nevada has adopted a Renewable Portfolio Standard, which requires utilities to have 20 percent of their electricity supplied from renewable sources by 2015.

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