A testing and stimulation program, designed to moderate the rate at which production well temperatures are declining, is nearing completion at Blue Mountain. Recent breaches of EIG Global Energy Partners ("EIG") loan terms have resulted in the classification of the EIG loan as a current liability as at December 31, 2011. The John Hancock Life Insurance Company loan, guaranteed by the United States Department of Energy, remains classified as long-term, since the repayment of this loan is still projected to take place in accordance with the original repayment schedule. The Company is diligently pursuing a restructuring of the EIG loan, and has appointed Canaccord Genuity to assist with the loan restructuring as well as recapitalization of the Company.
During the quarter, work at the Crump Geyser joint venture funded by our joint venture partner, Ormat Nevada Inc., confirmed the existence of a 265ºF resource, which is currently the subject of further feasibility work.
Nevada Geothermal Power Inc. is an experienced renewable energy producer focusing on the development of CLEAN electrical power from high temperature geothermal resources in the United States. NGP currently owns a 100% leasehold interest in several properties in Nevada and California, and a 50% interest in Crump Geyser, in Oregon. These properties are at different levels of exploration and development.