The Laugaland geothermal system in N-Iceland is hosted by low-permeability fractured basalt and its productivity is limited by insufficient recharge, even though substantial thermal energy is in-place in the 90-100 degreesC hot rocks of the system. The purpose of a 2-year reinjection experiment, completed in late 1999, was to demonstrate that some of this energy could be extracted economically through long-term reinjection. A comprehensive monitoring program was implemented as part of the project, including three detailed tracer tests. More than 1400 tracer samples were collected during the tests. Tracer return data indicate that the injected water travels through the area bedrock by two modes: first, along direct, small volume flow-paths, such as fractures or interbeds; second, by dispersion and mixing throughout a large volume of the reservoir. Based on the tracer test results, and assuming 15 l/s average future reinjection, the temperature of water produced is predicted to decline by 1-3 degreesC in 10 years. It can be asserted, in spite of measurement uncertainties, that the 2-year reinjection experiment did not cause a temperature decline greater than about 0.5 degreesC, conforming to predictions. It is estimated that future reinjection at 15 l/s will enable an increase in energy production amounting to about 24 GWh(th)/year, which equals roughly 1/4 of the average yearly energy production at Laugaland during the last decade. Reinjection has continued after the experiment and is already an important part of the management of the Laugaland geothermal system.