DEEP’s target resource is a 3000 metre deep (Deadwood and Winnipeg Formations), hot aquifer – a 150 metre thick zone that has been drilled and temperature tested from oil and gas exploration activity in the area. Because this hot aquifer is part of the Williston Basin stratigraphy, it has huge lateral continuity which will enable repeatability and scalability for each project area with little geological risk. DEEP plans to drill into this deep aquifer, draw the hot water up though piping and use the heat to turn a turbine to produce electricity. This technology is currently being used all over the world with the USA leading with about ~3400 Megawatts of clean renewable geothermal energy production.
The biggest advantage that geothermal power has over other renewables such as wind, is that it has the capacity to deliver constant power. This well-established technology does not depend on weather and as a consequence, is able to provide power at ~95% of the time. Another great advantage is that it has a remarkably small environmental footprint with all turbine technology housed into a small barn-sized building.
DEEP has received its first exclusive area for geothermal power development from the Saskatchewan Ministry of Energy and Resources. The property is secured in a Lease of Space Agreement where The Minister has leased to DEEP all rights and interests from the top of the Winnipeg Formation to the base of the Deadwood Formation. The project area is located in Southeast Saskatchewan, west of Estevan, and totals 5,920 acres (~9.5 sections). Total rental fees for this project area are less than $10,000/year.
Our 3rd party consultants, Borealis Geopower, have completed an initial resource estimate on this first property with a very positive outcome. From their report “… the analysis suggests that small geothermal ( on subsequent locations, DEEP can easily achieve >50 MW of clean power production in the very near future.
DEEP was selected in SaskPower’s 2011 Green Options Partners Program Lottery, for our first power purchase agreement. This is a significant milestone as the Company can now accurately forecast its future revenue stream from power generation. This announcement is also very timely as it will assist in capital raising efforts for initial geothermal drilling, expected to commence this winter. As the Green Options Partners Program lottery selections occur each year, DEEP will be applying for increased power allocation in the future.
- Low risk geology – huge sedimentary aquifer (Deadwood and Winnipeg Formations)
- No major exploration costs – utilizing public data from oil and gas drilling exploration
- Low initial capital expenditure – Scalable and repeatable projects
- 100s of megawatts of baseload power potential
- Silent and minimal environmental footprint (housed in a barn-sized building), zero carbon emissions
- Inexhaustible resource – it heats water as long as the center of the earth remains hot!
- Mature and reliable technology – not a science project – being done all over the world