News
Aug 31, 2010MAGMA ENERGY ANNOUNCES HS ORKA’S RELEASE OF MID YEAR FINANCIAL RESULTS
VANCOUVER, Aug. 31 /CNW/ - Magma Energy Corp. (TSX: MXY) reports that Icelandic geothermal company HS Orka hf ("HS Orka"), held 84.21% by Magma Energy, today released its audited financial and operating results for the six months ended June 30, 2010. These results may be accessed at: http://ow.ly/2wY0h
HS Orka prepares its financial statements in accordance with International Financial Reporting Standards and are reported in Icelandic kroner. Summarized below are HS Orka's financial results presented in US dollars and reconciled with Canadian GAAP. At June 30, 2010 Magma Energy owned a 46.18% interest in HS Orka and accounts for its investment using the equity method of accounting.
While HS Orka's results from operating activities were 70% higher than the same period last year, HS Orka reported a net loss of $18.2 million for the six months ended June 30, 2010. This loss was primarily the result of a $31.8 million loss in the change in fair value of embedded derivatives in sales contracts. Approximately 50% of HS Orka's power sales agreements are partially indexed to the price of aluminum resulting in embedded derivatives. Changes in the forward price of aluminum result in a fair value change of the derivative. At June 30, 2010 the forward price of aluminum on the London Metal Exchange was lower than the value at December 31, 2009. This resulted in a non-cash loss of $31.8 million in the change in fair value of embedded derivatives in sales contracts.
HS Orka Financial Results
(expressed in millions of US dollars and reconciled with Canadian GAAP - unaudited)
Summary financial information with respect to the operations of HS Orka, on a 100% basis is as follows
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For the For the
Six Months Ended Year Ended
June 30, 2010 December 31, 2009
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Total revenue 27.5 49.8
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Cost of energy production (18.1) (35.5)
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Gross profit 9.4 14.3
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Other operating expenses (1.5) (2.9)
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Results from operating activities 7.9 11.4
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Other income (expenses) (29.6) 46.3
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Income tax recovery (expense) 3.5 (7.4)
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Income (loss) for the period (18.2) 50.3
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EBITDA 12.1 19.1
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Total assets 299.2 318.5
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Total liabilities 201.3 217.8
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Cash and cash equivalents 7.7 1.2
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Working capital (deficiency)(*) 20.4 6.6
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(*) current assets - current liabilities (net of current portion
of long term debt)
Magma Energy's year end results for the period ending June 30, 2010 will be announced after markets close on September 28, 2010.
About HS Orka
HS Orka is the largest privately owned energy company in Iceland producing 9% of the country's power needs. Installed geothermal power capacity is 175 MW from the Svartsengi and Reykjanes power plants. In addition, HS Orka generates 150 MW of thermal energy for district heating. Expansions are planned that will increase HS Orka's geothermal power production to 405 MW by 2016.
About Magma Energy Corp.
Magma Energy Corp. is a global geothermal power company which operates, develops, explores and acquires geothermal energy projects. We have an extensive portfolio of properties throughout the western United States, Iceland and Latin America, including one operating power plant in Nevada and two in Iceland.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding our growth, results of operations, revenues, requirements for capital, future demand for and prices of electricity, business prospects and opportunities, exploration and development, geothermal resources, recoverable geothermal energy or energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. In addition, it is worthy of note that the financial results of HS Orka represent the second operating year of the company in its present form. As such, future results could differ materially from those reported or anticipated. Accordingly, prospective investors should not place undue reliance on the current reported financial results. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances. There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.
For further information: Alison Thompson, Vice President, Corporate Relations, Magma Energy Corp., Phone: 604.646.1882, Email: .(JavaScript must be enabled to view this email address)
Aug 30, 2010
U.S. Geothermal closes San Emidio financing and construction agreements - Plant construction started
TRADING SYMBOLS
In the United States: NYSE Amex: HTM and in Canada: TSX:GTH
Boise,Idaho- August 30, 2010 (NYSE Amex: HTM, TSX: GTH)U.S. Geothermal Inc., a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today that its wholly owned subsidiary, USG Nevada LLC, has entered into agreements with Science Applications International Corporation ("SAIC"), a FORTUNE 500® scientific, engineering, and technology applications company, for a project loan and an engineering, procurement and construction contract for a geothermal power plant for Phase 1 of the San Emidio project in northwest Nevada. The work will be executed by SAIC's design-build subsidiary, The Benham Companies, LLC.
The San Emidio project is a planned two-stage development. Phase 1 consists of relocation and replacement of the existing power plant. The new 11.5 megawatt ("MW") plant will have a net electrical output of between 9.1 and 8.1 MWs depending on seasonal and other variations. Phase 2 is a planned 26 MW expansion. SAIC is providing design-build services for the Phase 1 geothermal power plant, teamed with technology provider TAS Energy Inc ("TAS") who worked in close collaboration with US Geothermal on the plant design. TAS will manufacture and test the modular plant in their Houston, Texas factory. SAIC is also providing a project loan for the Phase 1 total construction costs currently estimated to be approximately $27.0 million. To secure a long term project loan to repay the construction loan, U.S. Geothermal is engaged in financing discussions in preparation for the project's application to the DOE geothermal loan guarantee program. In support of the two-stage development plan, negotiations are continuing on a 35 MW power purchase agreement ("PPA"). The project is currently producing and selling up to 3 MW of electricity under a PPA with Sierra Pacific Power Company, a subsidiary of NV Energy.
"Considering our ongoing development work at Neal Hot Springs in Oregon, constructing two key projects at the same time is the result of lot of hard work and is a significant achievement for the Company," said Daniel Kunz, President and CEO of U.S. Geothermal Inc. "Closing this fully financed, turnkey engineering, procurement and construction arrangement signals the start of construction at San Emidio. The replacement of the old plant is expected to triple project revenues and earnings and will provide us with a solid foundation for continued expansion."
USG Nevada is constructing a new generation, water-cooled binary cycle power plant that produces renewable base load electricity. The TAS modular plant is expected to provide a rapid development schedule of 12 months and will use R-134a refrigerant which is non-volatile and reduces permitting and insurance requirements for the project. No drilling is required for Phase 1 since the new plant will utilize the production and injection wells which are currently in use by the existing San Emidio power plant. The existing plant will be decommissioned when the new plant achieves commercial operation. The anticipated commercial operation date is 4th quarter of 2011 for Phase 1 and 4th quarter of 2013 for Phase 2.
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a renewable energy development company that is operating geothermal
power projects at Raft River, Idaho and San Emidio, Nevada. USG Oregon is currently under construction as development work on production and injection wells continue. The project has an approved power purchase agreement with Idaho Power Company and has received a conditional commitment for a $102.2 million loan through the Department of Energy Section 1703 loan guarantee program for the development and construction of the Neal Hot Springs project.
Please visit our Website at: www.usgeothermal.com
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Saf Dhillon - Investor Relations
U.S. Geothermal Inc.
Tel: 866-687-7059
Fax: 208-424-1030
.(JavaScript must be enabled to view this email address)
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated development of San Emidio, including financing, megawatt output and schedule. These statements are based on U.S. Geothermal Inc.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described, including but not limited to, completion of the definitive agreements with vendors, risks and delays relating to construction, and application for and approval of long-term financing from the DOE. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.
The NYSE Amex and the Toronto Stock Exchange do not accept responsibility for the adequacy of this release.
Aug 23, 2010
Available for purchase the presentations from the 3rd Annual Conference & Geothermal Code Workshop
Due to overwhelming requestsfrom those who were unable to attend the information intensive Third Annual Conference in Vancouver BC we have made all (25) presentations available for purchase. For a limited time only conference presentations are available at the reduced rate of $299.00! To purchase the presentations: Click Here
The event focused on the fact that geothermal energy is an important constituent of Canada’s energy future. The growth of geothermal power serves the Canadian economy through new jobs and investment, improves the reliability of Canada’s power supply and offers an environmentally-friendly option to keep pace with increasing demand for electricity, bringing together many participants from all facets of the industry and all corners of the globe.
Presentations available in this package include:
Speaker Presentations - Monday, August 9, 2010
Opening Keynote Presentation
CanGEA Presentation
A View on the Canadian Market
Islandbanki Presentation
BC Clean Energy Act
Ministry of Energy Mines and Petroleum
Geothermal Exploration in the Yukon
Yukon Energy Corp.
Geothermal Opportunities in Alberta
Alberta Innovates - Energy and Environment
Geothermal Developments in the Northwest Territories
Government of the Northwest Territories
BC Hydro Alternative & Emerging Energy Strategy
BC Hydro - Alex Tu Presentation
The BC Clean Energy Act and Exports
Clark Wilson LLP Presentation
Carbon Credit Markets and the Potential for Geothermal
Borden Ladner Gervais LLP - Doug Tingey Presentation
The Clean Energy Act and Long Term Planning
BC Hydro - Kip Morison Presentation
Speaker Presentations - Tuesday, August 10, 2010
Binary Geothermal Power Development - New Technologies
Raser Technologies Inc. Presentation
Geothermal Power - Company Updates
US Geothermal Inc. Presentation
Ormat's Worldwide Presence as a Geothermal Technology Provider
Ormat Technologies Inc.
Geothermal Power - Project Generation, Development and Operation
Nevada Geothermal Power Corp. Presentation
Sierra Geothermal Power Project Updates
Jeff Witter presentation
Kelly Franz presentation
Ram Power - Operations and Development
Ram Power Presentation
A Look into Geothermal Drilling
Thermasource, Inc. Presentation
Exploration and Geothermal Research in Nevada and the Great Basin
Great Basin Center for Geothermal Energy Presentation
Introduction to The Geothermal Code for Public Reporting
Canadian Geothermal Energy Association Code Committee (CGCC) Presentation
The Geothermal Code Panel
Mannvit Engineering Presentation
GeothermEx, Inc Presentation
Magma's Reserves, Resources and Exploration Results according to the Geothermal Code
Magma Energy Corp. Presentation
The Finance Panel - Geothermal Funding and Capital after the Financial Crisis
Borden Ladner Gervais Presentation
Glacier Presentation
Anders Kruus Presentation
Also available are the presentations from the Geothermal Code for Public Reporting workshop, the Geothermal Code provides a minimum set of requirements for the reporting of Exploration Results, Geothermal Resources and Geothermal Reserves on Canadian stock exchanges. The Geothermal Code, a first for Canada, will be a key factor in increasing investor confidence and interest through the standardization of geothermal reporting. This is available at a cost of $199.00 to download the presentations: Click here
Presentations available in this package include:
Vancouver Code Workshop - August 8, 2010
Geothermal Code Committee Presentation
The Geothermal Reporting Code - Resource Assessment Methods and Applicability
Mannvit Engineering
Magma Energy - The Geothermal Code
Magma Energy Presentation
All presentations in PDF format and can be purchased by credit card.
The link to download the presentations will be included in the confirmation message after payment has been received.
Presentations can be purchased until September 3rd, Hurry and get your copies now!
Aug 23, 2010
Nevada Geothermal announces settlement with Ormat
Announces Settlement with Ormat
Vancouver, B.C. (August 23, 2010), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF)is pleased to report that NGP Blue Mountain I LLC, the owner of the 49.5 MW Faulkner 1 geothermal power plant and Ormat Nevada Inc. have settled all disputes that have arisen under the EPC contract as a result of the facility shutdown between January 16 and February 23, 2010 due to a short circuit caused by faulty layout of underground cables.
"We believe the settlement, which consists of cash, power plant spares and extended warranties, is responsive to NGP's requests. NGP is pleased with the performance of the plant since its restart in February and we are looking forward to a good and continuing relationship with Ormat," said Brian Fairbank, President & CEO.
"We are happy with the settlement," said Dita Bronicki CEO of Ormat. "This demonstrates Ormat's commitment to its EPC customers. We wish NGP success in the continued development of geothermal power plants."
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 49.5 MW Faulkner 1 geothermal plant in Nevada. It is a growing, renewable energy developer focused on producing clean, efficient and sustainable geothermal electric power from high temperature geothermal resources in the United States. NGP currently owns a 100% leasehold interest in five properties: Blue Mountain, Pumpernickel Valley, Edna Mountainand Black Warriorin Nevada, and Crump Geyser, in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of between 150 MW and 300 MW from its current leaseholds.
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng.
President & CEO
http://www.nevadageothermal.com
Investor Inquiries:
Paul Mitchell
Nevada Geothermal Power Inc.
Telephone: 604-688-1553 X118
Direct Line: 604-638-8784
Toll Free: 866-688-0808 X118
Email: .(JavaScript must be enabled to view this email address)
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Aug 18, 2010
US Geothermal - CONSTRUCTION PERMIT APPROVED FOR PHASE 1 OF SAN EMIDIO PROJECT
TRADING SYMBOLS:
In the United States: NYSE Amex: HTM and in Canada: TSX:GTH
CONSTRUCTION PERMIT APPROVED FOR
PHASE 1 OF SAN EMIDIO PROJECT
BOISE,Idaho - August 18, 2010 (NYSE Amex: HTM, TSX: GTH)U.S. Geothermal Inc. ("U.S. Geothermal"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today that it has received the Special Use Permit from the Washoe County Planning Commission for construction of its proposed 8.6 net megawatt Phase 1 power plant at the San Emidio Project in northern Nevada. The Special Use Permit was unanimously approved at an August 3, 2010 Planning Commission meeting and was issued on August 4, 2010.
The Special Use Permit allows for the replacement and relocation of the existing power plant, and is subject to the issuance of any other necessary permits from the Washoe County Building and Safety Department. Construction on the project is anticipated to begin during the 3rd quarter of 2010 which will qualify the San Emidio project for the Federal ITC cash grant. Final completion of the new plant is scheduled for the 4th quarter of 2011.
The full development of, San Emidio is planned as a two phase program that will result in a total of 35 megawatts of net generation capacity from four binary cycle power plant modules. Phase 2 will require additional drilling and resource development. Resource expansion efforts are underway with funding assistance from the $3.77 million dollar Department of Energy Innovative Exploration Grant that was awarded to U.S. Geothermal in 2009. To date, approximately 80% of the geologic mapping is complete. PSInSAR data acquisition and processing, and permitting for the seismic refraction survey are nearly complete. The seismic survey is scheduled to start in mid-September.
About U.S. Geothermal:
U.S. Geothermal is a renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The company is initiating construction of Phase 1 at San Emidio and is proceeding with documentation for the closing of a $30 million vendor-financed construction contract for the installation of a new 8.6 net megawatt geothermal power plant.
Please visit our Website at: www.usgeothermal.com
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Saf Dhillon U.S. Geothermal Inc. - Investor Relations
Tel: 866-687-7059
Fax: 208-424-1030
.(JavaScript must be enabled to view this email address)
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.
The NYSE Amex and the TSX do not accept responsibility for the adequacy of this release.
Aug 17, 2010
Magma Energy Completes Purchase of Further Interest in Icelandic Geothermal Energy Producer HS Orka
VANCOUVER, Aug. 17 /CNW/ - Magma Energy Corp. (TSX: MXY) announces that its wholly-owned subsidiary, Magma Energy Sweden A.B., today has closed a portion of a previously announced agreement to acquire further shares of Iceland geothermal company HS Orka hf. Magma Sweden now holds an 84.21% interest in HS Orka. The acquisition was originally announced in a press release dated May 17, 2010.
In today's transaction, Magma Sweden acquired 38.03% of HS Orka's outstanding shares from Geysir Green Energy ehf in consideration for:
- payment today of 3,871,195,513 Icelandic Kroner ("ISK")
(approximately US $32.3 million);
- issuance today of 24,808,569 subscription receipts of
Magma Energy Corp.; and
- payment on November 30, 2010 of approximately 3,062,612,586 ISK
(approximately US $25.6 million), subject to certain interest
adjustments.
Each subscription receipt will convert into one common share of Magma Energy Corp. on December 18, 2010 for payment of no additional consideration. Magma Energy Corp. has the right at its sole option to repurchase the subscription receipts, in whole or in part, at prices ranging from 135.90 ISK to 142.24 ISK per subscription receipt at certain times between September 4, and December 11, 2010. The maximum aggregate cost to repurchase all of the subscription receipts will be approximately US $29.5 million.
Magma Sweden's previously announced agreement to acquire Geysir's remaining 14.32% interest in HS Orka has not yet closed and remains subject to certain outstanding closing conditions, which are expected to be met in the near term.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance and prospects for closing our acquisition of a further interest in HS Orka. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.
A number of known and unknown risks, uncertainties and other factors, may cause our actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information, including, but not limited to, risks that: conditions to closing Magma Sweden's acquisition of a further interest in HS Orka may not be met; the government of Iceland may take actions to invalidate or wind-down Magma Sweden's acquisition of a further interest in HS Orka; the government of Iceland may take steps to invalidate or wind-down the prior privatization of Hitaveita Sudurnesja (now HS Orka); the government of Iceland may pass legislation or constitutional amendments to nationalize or restrict private or foreign ownership in Iceland's energy sector; and general economic conditions. Forward-looking information and statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur.
There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.
For further information: Alison Thompson, Vice President, Corporate Relations, Magma Energy Corp., Phone:
Aug 12, 2010
Ram Power Press Release August 12, 2010
RENO, NEVADA- (August 12, 2010)– Ram Power, Corp. (TSX: RPG) ("Ram Power" or the “Company”), today reported its financial and operating results for the second quarter ended June 30, 2010. This earnings release should be read in conjunction with Ram Power’s MD&A and financial statements, which are available on the Company’s website at www.ram-power.comand have been posted on SEDAR at www.sedar.com.
Concurrent with today's release, Hezy Ram, CEO of Ram Power, said, “Ram Power continued in the second quarter of 2010 to execute its plan to be one of the world’s preeminent geothermal power companies. Construction of Phase I and II expansions at our San Jacinto-Tizate project proceeds according to the schedule and budget. We are in the final stages of the negotiation process for the Phase II expansion’s financing, which is expected to close in the third quarter. Drilling activity commenced at the Orita project in parallel to negotiations with EPC contractors. We recently purchased the land rights associated with our Geysers project in Northern California which will allow forflexibility and autonomy in the development of this project, which is a continuation of our commitment to developing our pipeline of projects to their full potential. As well, the Company announced the pending acquisition of Sierra Geothermal Power Corp.”
OVERVIEW
The financial results of Ram Power for the three and six months ended June 30, 2010 and 2009 are summarized below:
For the purpose of this summary, the results of Polaris Geothermal Inc. for the three and six months ended June 30, 2009 are used as comparatives because, for accounting purposes, the financial statements of the Company are deemed to be a continuation of the financial statements of Polaris Geothermal Inc.
For the second quarter ended June 30, 2010, the Company reported a net loss of approximately $6.5 million ($0.04 per share). On a cash basis, for the same period, the Company had a negative cash flow of about $5.7 million from operating activities and spent approximately $51.6 million on additions to geothermal properties and capital assets, including approximately $23 million on the Phase I and II San Jacinto expansions, $20 million to acquire the land rights associated with the Geysers project, and approximately $6.5 million on the Orita Project. At June 30, 2010, the Company had cash and short term investments of approximately $91.5 million, and long-term debt, net of debt discount, of approximately $45.6 million.
San Jacinto Operations
The San Jacinto operating plant produced as expected during the quarter with short interruption to correct the decline performance of an injection well. In early 2010, the power plant was not producing to its full capacity due to insufficient injection at the SJ-1 well. During the second quarter ending June 30, 2010, the Company completed a mechanical cleaning of that well which resulted in full recovery of the injection capacity of this well. The clean out operation restored the net MW production of the power plant to its optimal 9.6 MW.
Construction continued during the second quarter on the Phase I 36 MW expansion of the current operating facility to increase the production capacity to 46 MW. The Company expects a commercial operation date in the second quarter 2011. The current active production and injection wells have sufficient capacity to support the planned production increase. The total cost of the Phase I expansion is estimated to be $156 million. The Company is using a combination of cash on hand and a $77 million credit facility to fund the cost of the expansion. In the six months ended June 30, 2010, the Company satisfied the equity investment requirement for the credit facility and drew $47 million of the $77 million available under the facility. As of June 30, 2010 the Company had approximately $90.7 million in accumulated costs related to the Phase I expansion.
The Company commenced its drilling/exploration program for Phase II of the San Jacinto Project in April 2010 with two rigs. The first exploration/production well (SJ 12-1) was completed in July 2010 and encountered fault-controlled permeability at several shallower zones. A maximum temperature of over 500 degrees Fahrenheit was measured in the well. The well is being allowed to heat prior to temperature surveys and flow testing which will be conducted in August 2010. A second production well (SJ 9-3) commenced drilling by a smaller rig in June 2010 and was cased at 2,550 feet. Drilling on SJ 9-3 has resumed recently by a bigger rig and is currently being targeted to a depth of approximately 6,000 feet which is expected to be completed by the end of August 2010. The Company anticipates completing its Phase II drilling program by March 2011.
The Company is in negotiations with a group of development banks led by International Finance Corporation (“IFC”) and Inter-American Development Bank (“IDB”) to provide the debt financing for the Phase II expansion, which will add 36 MW for a total capacity of 72 MW, after which the 10 MW facility will be decommissioned. Approvals were obtained for over $200 million senior debt financing which exceeds the expected financing need of $140 million. The approvals are subject to execution of a definitive agreement among the parties. Phase II is being constructed in parallel to Phase I and is being financed with cash on hand until the Phase II debt financing closes, which is expected to occur in the third quarter of 2010. As of June 30, 2010 the Company had approximately $27.1 million in accumulated costs related to the Phase II expansion.
Exploration Activities
In April 2010, the Company commenced its Orita drilling/exploration program starting with Orita Well #2 which was drilled as a direct offset to production encountered in the successful Emanuelli #1 well drilled in 1982. The Emanuelli #1 well produced about 500,000 pounds per hour which indicated commercial viability. Orita Well #2 was intended to test potential production zones down to 10,400 feet. Drilling was suspended at a depth of 9,267 feet due to mechanical problems and the well was lined with perforated casing, cleaned and tested. A maximum temperature of 457 degrees Fahrenheit was measured in the well still cooled by drilling mud. A flow test produced fluids that confirmed the desired low-salinity benign chemistry but only marginal permeability at this depth. In September 2010, the Company expects to resume drilling to the intended 10,400 foot production zone to enhance the fluid mass flow rate.
In July 2010 drilling commenced on Orita Well #3 is which is being drilled to the targeted depth of about 9,000-10,000 feet. As of August 2010, the well shows significant hydrothermal alterations and is being drilled to intercept a major fault controlled low-resistivity zone. The drilling of Orita Well #3 is expected to be completed in August 2010. The well was successfully cased at 6,700 feet and is currently at about 9,000 feet. Flow testing will be conducted in the later part of August 2010.
Mr. Ram concluded, “Ram Power remains committed to the execution of our business plan which maximizes shareholder value through the development of clean, reliable geothermal projects.”
About Ram Power, Corp.
Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties and has interests in geothermal projects in the United States, Canada, and Latin America.
Steven Scott, Director of Investor Relations
Ram Power, Corp.
Phone: 775-398-3711
Email: .(JavaScript must be enabled to view this email address)
www.ram-power.com
Cautionary Statements
This news release contains certain “forward-looking information” which may include, but is not limited to, statements with respect to future events or future performance, management’s expectations regarding the Company’s growth, results of operations, estimated future revenues, requirements for additional capital, production costs and revenue, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy “reserves” or “resources” or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “predicts”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities or in the commencement of operations; as well as those factors discussed in the section entitled “Risk Factors” in this news release. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.
Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Such forward-looking information is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power, Corp. assumes no obligation to update or revise such forward-looking information to reflect new events or circumstances.
Aug 11, 2010
Canada has big geothermal potential, industry says
Mon Aug 9, 2010 4:57pm EDT
By Nicole Mordant
VANCOUVER British Columbia (Reuters) - Canada has the potential to generate enough clean, low-cost electricity from geothermal sources to power 5 million homes, the country's geothermal association said on Monday.
As things stand though, the resource-rich country does not produce a single unit of geothermal energy, which comes from hot water and steam produced by heat deep below the earth's surface.
This is a result of a lack of government funding, a shortage of land made available for development, a dearth of knowledge and the existence of other cheap and more traditional power sources like hydro and natural gas, Alison Thompson, chairman of the Canadian Geothermal Energy Association said.
"Geothermal is practically the lowest-cost electricity, not only of the renewables," Thompson told delegates at an industry conference in Vancouver, showing a slide where only coal-generated power was cheaper.
"But people don't even know it's an option, even in towns where there are hot springs," she later told Reuters on the sidelines of the conference.
In geothermal power production, hot water and steam from underground are piped up and used to drive turbines in plants that generate electricity.
Well-known manifestations of geothermal energy are geysers and hot springs, which form when heated water rises and breaks through the earth's surface.
In Canada, as in the United States, most of the geothermal resources are found in the West. Thompson said Canada has at least 5,000 megawatts of geothermal resource in the western provinces of British Columbia, Alberta, Yukon and Northwest Territories.
The industry wants the Canadian federal and provincial governments to invest in mapping studies and provide early-stage financial support, as the United States has.
Ironically Canada has an abundance of geothermal developers but most of the companies are active in the United States, the world's biggest producer of geothermal energy.
Some 27 percent of geothermal development in the United States is carried out by Canadian-based companies, said Alexander Richter, director of sustainable energy at Islandsbanki, an Icelandic bank active in geothermal financing.
Geothermal companies have set up shop in Canada largely because of the financial community's comfort with financing mining projects, which are similar to the earlier stages of geothermal development.
Canadian-listed geothermal developers include companies such as Magma Energy Corp, Ram Power Corp, Nevada Geothermal Power and Sierra Geothermal Power Corp.
(Editing by Frank McGurty)
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Aug 06, 2010
Yukon’s geothermal search yields potential
Featured on CBC News http://www.cbc.ca/canada/north/story/2010/08/05/yukon-geothermal-energy-yec.html
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Yukon Energy Corp. says it is encouraged by preliminary findings in its search for geothermal energy sources.
Yukon Energy Corp. says it is encouraged by preliminary findings in its search for geothermal energy sources.
Engineers contracted by the territorial public utility are in their third year of field tests, hoping to find an underground heat source that could produce electricity.
Their studies suggest that the Jarvis Creek area, north of Haines Junction, shows the most potential so far. Preliminary drilling tests done there last year found underground water with a temperature of about 80 C.
"They [the engineers] think it's warmer, so we're going to try to do some more work next year and prove that," Yukon Energy president David Morrison said.
"If we can get into the 100 [to] 110 C range, we're pretty certain that we can push forward a project if we can locate the source of the reservoir."
Potential sites in Whitehorse
Morrison said a few good sites have also been identified in the Whitehorse area, but he wouldn't specify where in the capital city they are located.
"I'm not trying to be coy, but I really don't want to be very specific," he said. "Whitehorse obviously has some potential because of its geological structure and that there are hot springs in the area."
Yukon Energy, which generates mainly hydroelectricity but also has backup diesel generators and two wind turbines, has spent almost $1.5 million over the past two years to find potentially viable geothermal power sources.
Morrison said more drilling planned for this fall along Jarvis Creek should help engineers determine if that area can provide geothermal energy.
"The beauty of this is it has a high rate of efficiency - geothermal projects run in the 90, 95 per cent range - which is great, so it means they just run all day," he said.
"They're clean, it's a renewable source, so it's quite an efficient use of energy."
Aug 06, 2010
Magma Energy Amends Final Prospectus And Announces Completion Of Distribution
Vancouver, B.C., Canada, August 5, 2010 -- Magma Energy Corp. (TSX: MXY) (the "Company") today announced that it has obtained a receipt from securities regulatory authorities for the Amendment No. 1 dated July 30, 2010 to the Company's short form prospectus dated July 21, 2010. The Amendment No. 1 was prepared by the Company to disclose recent announcements by the government of Iceland regarding, among other things, the Company's acquisitions of shares of HS Orka hf, as previously discussed by the Company in its press release dated July 28, 2010 and its related material change report dated July 29, 2010. The Company also announces that the distribution pursuant to the short form prospectus is now complete.
About Magma Energy Corp.
Magma Energy Corp. is a global geothermal power company which operates, develops, explores and acquires geothermal energy projects. We have an extensive portfolio of properties throughout the western United States, Iceland and Latin America, including one operating power plant in Nevada and a significant interest in two in Iceland.
For further information please contact:
Alison Thompson, Vice President, Corporate Relations
Magma Energy Corp.
Phone: 604.646.1882
Email: .(JavaScript must be enabled to view this email address)
