News
Sep 30, 2010National Bank Financial Joins The Canadian Geothermal Energy Association
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Sep 29, 2010 13:36 ET
MONTREAL, QUEBEC--(Marketwire - Sept. 29, 2010) - National Bank Financial, a subsidiary of National Bank Financial Group, is pleased to announce that it has joined The Canadian Geothermal Energy Association's (CanGEA) Corporate Membership.
National Bank Financial's membership in CanGEA represents the financial community's growing support for geothermal energy and CanGEA's initiatives, most importantly the "Canadian Geothermal Code for Public Reporting", which has revolutionized the reporting of geothermal information.
National Bank Financial Group has been particularly supportive of the Code, which aims to improve investor confidence in the industry. The Code is now being applied in the investment banking industry for company benchmarking, project development communication with investors, and in the evaluation of Code-compliant financial ratios.
"National Bank Financial decided to join the ranks of the banking members of this recognized national industry association so that it can participate in future initiatives within the natural resources and energy industry. The Canadian Geothermal Code for Public Reporting will provide a basis for transparency and consistency in the public reporting and standardization of geothermal information", explained Iain Watson, Managing Director, Investment Banking at National Bank Financial.
National Bank Financial joins Islandsbanki, Jacob Securities Inc., Wellington West Capital Markets, and Dundee Securities Corporation as CanGEA's investment banking members.
About National Bank Financial
National Bank Financial provides brokerage services to consumer, corporate, government, and institutional clients in Canada. The company offers sales and trading of fixed-income products, equities, and derivatives, and performs third-party clearing services for other financial institutions. It provides investment banking and corporate finance services as well. The firm's retail advisory business serves individual investors through some 90 offices throughout Canada (with a concentration in Quebec), managing more than $50 billion on behalf of approximately 275,000 clients. The firm also has operations in the US and Europe. National Bank Financial is a subsidiary of National Bank of Canada.
About National Bank of Canada
National Bank of Canada is an integrated group that provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has over $146 billion in assets and, together with its subsidiaries, employs 18,438 people. The Bank's securities are listed on the Toronto Stock Exchange (TSX:NA). For more information, visit the Bank's website at www.nbc.ca. To access the National Bank Financial Group's financial literacy portal, visit the www.clearfacts.ca.
The telephone number provided below is for the exclusive use of journalists and other media representatives.
For more information, please contact
National Bank Financial Group
Joan Beauchamp
Senior Advisor, Public Relations
514-394-6500
Sep 29, 2010
Magma Energy Corp Announces Fourth Quarter and Audited 2010 Year End Results
(All amounts in US dollars and all production figures are gross MW unless otherwise stated. MW are presented according to the Geothermal Reporting Code)
VANCOUVER, Sept. 28 /CNW/ - Magma Energy Corp. (TSX:MXY) today reported its fourth quarter and audited financial and operating results for the fiscal year ended June 30, 2010. The Company also provided an update on its operations. This earnings release should be read in conjunction with the Company's 2010 Audited Annual Consolidated Financial Statements, Notes thereto, Management's Discussion and Analysis and Annual Information Form for the corresponding period, which are available on the Company's website at www.magmaenergycorp.com and have been posted on SEDAR at www.sedar.com.
Commenting on today's announcement, Ross Beaty, Chairman and CEO, said "2010 has been an exciting inaugural year for Magma Energy as a public company. Since our IPO in July 2009, we have grown our production from 11 megawatts to 186 megawatts and have increased our reserves and resources nearly seven-fold. We have a balanced portfolio of operations and exploration in three core geothermal regions in the world, Iceland, Chile and Nevada, including a leading exploration position in the US to complement our expanding Soda Lake operations, enabling us to participate in the country's generous renewable energy grant programs. I look forward to continued rapid growth in the forthcoming year."
Financial Results
Magma commenced operations in 2008, began generating revenue in October, 2008 and as at June 30, 2010 held only a 46.18% interest in HS Orka requiring it to equity account for HS Orka's operations. Subsequent to year-end, Magma acquired another 52.35% of HS Orka and will now consolidate its results. Therefore, Magma's financial results presented here are not reflective of financial results in the future and comparisons of revenues and expenses are not meaningful.
Summary Financial Results
(expressed in thousands of dollars, except for MWh and per share amounts)
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For the For the
Three Three
Months Months For the For the
Ended Ended Year Ended Year Ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
(unaudited) (unaudited) (audited) (audited)
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Production (MWh) 17,268 14,991 62,072 47,589
Total revenue 1,347 1,256 5,056 4,485
Gross profit 488 644 1,659 1,482
Expenses 3,493 1,261 9,997 4,966
Other expenses 5,669 1,260 8,108 976
Loss for the period 8,674 1,877 16,446 4,460
EBITDA(1) 2,978 (1,592) (3,261) (3,004)
Loss per share (basic
and diluted) .04 .01 .07 .03
Total assets 198,703 43,780 198,703 43,780
Total liabilities 56,633 4,582 56,633 4,582
Cash and cash equivalents 25,343 4,483 25,343 4,483
Working capital 21,426 2,748 21,426 2,748
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(1) EBITDA is defined by the Company as earnings before interest, taxes,
depreciation and amortization, as well as before deductions for non-
cash charges related to employee compensation and changes to the
balance sheet carrying value of long-term debt. The Company discloses
EBITDA as it is a measure used by analysts and by management to
evaluate the Company's performance. As EBITDA is a non-GAAP measure,
it may not be comparable to EBITDA calculated by others. In addition,
as EBITDA is not a substitute for net earnings, readers should
consider net earnings in evaluating the Company's performance.
Revenues from energy sales were $5.1 million, and gross profit from the Soda Lake operations was $1.7 million. The net loss for the year of $16.4 million or ($0.07) per share was primarily related to a non-cash $10.8 million equity loss from Magma's investment in HS Orka, increased expenses of $10.0 million related primarily to Magma's rapid growth and the write-off of $0.9 million of geothermal properties partially offset by the Soda Lake operational gross profit of $1.7 and foreign currency gains of $4.3 million.
At June 30, 2010 Magma owned 46.18% of HS Orka and recorded a $10.8 million equity loss for the period. While HS Orka's income from operations was 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 non-cash loss of $31.8 million in the fair value of embedded derivatives in sales contracts. Approximately 50% of HS Orka's power sales 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. HS Orka's EBITDA for the six months ended June 30, 2010 was $12.1 million.
On a cash basis for the year ended June 30, 2010, the Company spent $97.8 million on investing activities, including investments of $67.7 million to acquire a 46.18% interest in HS Orka, $16.0 million to acquire and explore the Company's portfolio of exploration projects and $13.4 million on the Soda Lake expansion and other equipment. At June 30, 2010, Magma had cash and cash equivalents of $25.3 million, working capital of $21.4 million, and long-term debt with a fair value $49.3 million. Subsequent to year end, the Company completed a secondary equity offering for net proceeds of C$43.3 million and entered into a credit facility agreement of C$10.0 million.
HS Orka Operations
Svartsengi's 75 MW power plant and associated 150 MW district heating system, as well as the 100 MW Reykjanes power plant produced as expected during the quarter. Progress on the two phase, 80 MW expansion at Reykjanes also continued when a new well, R-29, commenced drilling in the fourth quarter and a 50 MW turbine generator arrived on site. The well is currently being flow tested to establish its power production potential. $38 million of the $116 million budget for the first 50 MW expansion phase has been expended to date. The remaining cost for the expansion is expected to be funded mainly from HS Orka's cash on hand and by debt financing. To proceed with the expansion, HS Orka will require an expansion to its operating permit from the National Energy Authority as well as Power Purchase Agreements for the plant's expanded output.
Soda Lake Operation
The Phase 1 expansion of Soda Lake's output from 11 MW to nameplate capacity of 23 MW is ongoing. Three new wells have now been drilled and an existing well which had been shut in for many years has been brought back into service. A full field optimization program is underway in order to re-balance production and re-injection at Soda Lake. An extensive refurbishment completed in late 2009 increased the power conversion efficiency and added 1 MW of net power output. Magma expects to complete the Phase 1 expansion by the end of 2010. Upon completion of Phase 1, the Company will apply for the US Federal Treasury Grant which is valued at up to 30% of the eligible project costs.
Magma has also commenced a 14 MW Phase 2 expansion at Soda Lake based on a revised field potential estimate that was prepared earlier in the year in accordance with the Geothermal Reporting Code. Initial work will comprise geophysical and drill programs which will be assisted by a $5 million US Innovative Exploration and Drilling grant. Phase 2 is also expected to qualify for the 30% US Federal Treasury Grant program.
Negotiations have commenced with NV Energy and another Off-Taker to improve the power pricing under the current Power Purchase Agreements and for the planned increase in output expansion efforts. Portfolio Energy Credits are also a revenue stream at Soda Lake and are currently being held for future sale.
Exploration Activities
During the fourth quarter of fiscal 2010, Magma acquired three new geothermal leases in Nevada from the Bureau of Land Management for $0.8 million. These additions strengthened our land position on two existing properties, Desert Queen and Granite Springs. Exploration work consisting of environmental assessments, geophysical surveys and temperature gradient wells are on-going at Soda Lake, McCoy and Desert Queen.
In Chile, at Magma's Mariposa reservoir, a 50 MW exploitation permit was granted in the fourth quarter on the Maule property. 24 kilometers of road and camp infrastructure were constructed enabling Magma to establish year round operations. Two new slim holes have been drilled to further characterize the reservoir. More slim holes are planned and all data will be used in a reservoir model to update the current 320 MW Inferred Resource estimate.
In Peru, exploration work consisting of water chemistry, geologic mapping and structural analysis continues on Magma's properties, which hold significant potential for large high temperature geothermal systems.
Outlook
Mr. Beaty concluded, "Geothermal power is a great, clean energy source. I am really pleased we have already built a large, sustainable geothermal energy company and look forward to continuing growth in the years ahead as we seek to further expand our Soda Lake and HS Orka operations, further develop Mariposa and continue to discover new geothermal resources in Nevada, Chile, Peru and Iceland."
About Magma Energy Corp.
Magma Energy Corp. is a 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.
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Magma Energy will host a conference call to discuss financial and
operating results on Wednesday, September 29, 2010 at 11:30 am ET
(8:30 am PT). North American participants dial 1-877-240-9772 and
International participants dial 1-416-340-8527. The call will also be
broadcast live on the Internet at
http://www.investorcalendar.com/IC/CEPage.asp?ID=161489. The
call will be available for replay for one week after the call by dialing
1-416-695-5800 / 1-800-408-3053 (for North American and International
callers) and entering replay pin number 3548841.
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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 first 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.
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. The forward-looking information is based upon what management believes to be reasonable assumptions, including, but not limited to, assumptions about: the success and timely completion of planned exploration and expansion programs, the growth rate in net electricity consumption; support and demand for non-hydroelectric renewables; government initiatives to support the development of renewable energy generation; the accuracy of reserve estimation methodology and analysis used to estimate the quantity of potentially recoverable thermal energy; geological, geophysical, geochemical and other conditions at our properties; the reliability of technical data, including extrapolated temperature gradient, geophysical and geochemical surveys and geothermometer calculations; capital expenditure estimates; availability of capital to fund exploration, development and expansion programs; 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: 604.646.1882, Email: .(JavaScript must be enabled to view this email address)
Sep 28, 2010
Nevada Geothermal Power Reports Year End Financial Results
Vancouver, B.C. (September 28, 2010), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF)today announced results for the year ending June 30, 2010. Gross margin for the year was $4.2 million and the net loss increased to $18.0 million. The full financial results are available at www.sedar.comand on the Company's website at http://www.nevadageothermal.com.
Commenting on the results, the Company's president and CEO Mr. Brian Fairbank said, "We are pleased with the performance of the Faulkner 1 power plant at Blue Mountain and the transition of the Company from a developer to a significant power producer. Revenue from power sales increased steadily from start up through each of the last three quarters. The plant generated approximately 37 MW (net) on average during the fourth fiscal (April - June) quarter and gross margin increased to $3.7 million, or 60 % of the $6.2 million revenue. The Company expects further improvement in plant output going forward with further drilling."
Highlights
. Faulkner 1 power plant start up October 10, 2009
. US federal government cash grant received ($57.9 million) during November 2009
. Power production increased to average 37 MW by the fourth fiscal quarter
. Application with John Hancock for a loan guarantee under the FIPP (Federal Institutions Partnership Program) and conditional commitment June 15, 2010
Subsequent to year end
. John Hancock $98.5 million loan closed with fixed interest at 4.14% for a 20 year term, permitting further development
. $8.4 million drilling fund included in John Hancock loan facility
. $10.4 million equity issue closed during September, 2010
Mr. Fairbank said, "NGP is continuing to drill at Blue Mountain in order to further distribute re-injection fluid, increase power production and offset a potential 2.5% per year power production decline. The Company has also been assessing low-cost capital by monetizing its tax benefits and/or from a potential cash grant related to additional construction since the plant was placed in partial service. NV Energy and TCW, the Company's power off-taker and mezzanine lender, continue to work cooperatively with us to optimize the operation of the Blue Mountain 'Faulkner 1' power plant."
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 Mountain and Black Warrior in 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.
Sep 27, 2010
Nevada Geothermal Power Completes Private Placement, Total Funds C$10,350,000
Vancouver, B.C. (September 27, 2010), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF)is pleased to announce that it has closed its non-brokered private placement. A total of 20,700,000 units were issued at a price of C$0.50 per unit raising gross proceeds of C$10,350,000.
Each unit consists of one common share and one transferable common share purchase warrant, with one warrant entitling the holder to purchase one additional common share of the Company for a period of up to 36 months at a purchase price of C$0.70 per warrant share. If, after January 24, 2011, the closing price of the Company's common shares on the TSX Venture Exchange is C$1.00 or greater per share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the warrants and in such case the warrants must be exercised within 30 days.
KBH Capital Corp. and Global Resource Investments LP acted as the principal finders and will receive a 5% cash commission and unit purchase warrants equal to 5% of the number of units sold to investors introduced to the Company. An aggregate of 1,000,000 finder's warrants were issued. Each finder's warrant entitles the holder to acquire one unit for a period of up to 36 months at an exercise price of C$0.50 per unit, subject to the accelerated expiry.
All securities issued under the private placement and all securities issued to finders are subject to a four month hold period.
The net proceeds of the offering will be used to fund further development at the Blue Mountain Faulkner 1 geothermal power plant, development of other existing projects and for working capital.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 49.5 MW Faulkner 1 geothermal power 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 Mountain and Black Warrior in 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
Sep 23, 2010
Ram Power announces drilling update at San Jacinto-Tizate
RENO, NEVADA (September 23, 2010) – Ram Power, Corp. (TSX: RPG) ("Ram Power"), a renewable energy company focused on the production and sale of electricity from geothermal energy, announced today the successful initial testing of well 9-3 at its San Jacinto-Tizate project site in Leon, Nicaragua. The initial 14 hour flow testing produced separated steam at a rate of 187,000 lbs./hr at an inlet turbine design pressure range of 85 bpsig with production from a down-hole zone that exceeded 5000F. These initial results confirmed that well 9-3 will be a production well with an estimated initial capacity of 8 to 10 MW (gross). Well 9-3 targeted a nearly vertical fault at a depth of 5500’ and encountered multiple fractures and high permeability. A long-term flow test which involves the connection of the well to the project’s production piping will be performed starting in early October and will be certified by GeothermEx, Inc.
Stuart Johnson, Vice President of Resource Development, stated, “The Phase II drilling campaign at our San Jacinto-Tizate project is proceeding on schedule with two production wells (9-3 and 12-1) drilled, well 9-3 successfully tested and a third well currently being drilled with completion scheduled in late October. Should these Phase II production wells test positively, this new production capacity, when added to the already certified and existing Phase I capacity of 46 MW, results in sufficient steam under valves to complete the full planned 85 MW expansion of the project.”
The phased expansion is designed to increase production from the current 10 MW to 46 MW in the first half of 2011 (Phase I). The 46 MW capacity will be expanded to 72 MW in the latter part of 2011 (Phase II). In 2012 there will be a bottoming unit added which will increase production to an anticipated capacity of 85 MW without the need to drill more production or injection wells. There is a long-term power purchase agreement in place with a subsidiary of Gas Natural Fenosa, a Spanish utility. The expansion will bring state of the art geothermal technology to an existing utility-scale power facility that will supply low cost geothermal energy to the region.
About Ram Power
Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties. Ram Power has an interest in geothermal projects, primarily 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 press release contains “forward-looking information” within the meaning of applicable securities laws including information regarding the business of Ram Power. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram Power undertakes no obligation to update forward looking information, other than as required by law, or comment on analyses, expectations or statements made by third-parties in respect of Ram Power, or its financial or operating results or its securities.
Sep 21, 2010
Geothermal sector turns up heat on government
Energy companies call for more exploration permits to develop the industry in B.C. and across Canada
By Curt Cherewayko
.(JavaScript must be enabled to view this email address)
Business in Vancouver September 21-27, 2010
The geothermal industry is citing Enbridge Inc.’s deal to finance a geothermal project in Oregon as further evidence that a lack of government interest in developing geothermal projects in Canada is forcing Canadian resource companies to look abroad for geothermal energy opportunities.
In what is its first foray into the geothermal sector, Calgary-based Enbridge (TSX:ENB; NYSE:ENB) announced September 8 that it will invest up to US$23.8 million for a 20% interest in a 35-megawatt geothermal project in Oregon that’s being developed by Idaho’s U.S Geothermal Inc. (TSX:GTH; NYSE, AMEX:HTM).
“Here you have another Canadian company who believes in geothermal, knows it works and is patient,” said Alison Thompson, chairwoman of the Canadian Geothermal Energy Association (CanGEA). “This project that [Enbridge] funded isn’t coming online until 2012, so it wasn’t like they’re trying to do it overnight.”
While not all provinces have geothermal resources that are worth developing, B.C. and Ontario do. Yet, neither province has geothermal power plants, even though numerous geothermal players have head offices in Vancouver and Toronto and trade on Canadian stock exchanges.
“They’re focusing on regions where they’re able to get government subsidies,” said Sean Peasgood, an analyst with Wellington West Capital Markets. Enbridge, for example, will receive a cash grant for its investment in the Oregon project under the U.S.A.’s investment tax credit (ITC) scheme.
Geothermal and other renewable energy developers are eligible for ITC grants, which are equal to 30% of a project’s capital costs, if their projects can be brought online by 2012. “There just isn’t the same type of government stimulus in Canada,” said Peasgood.
Thompson, who is also vice-president of Vancouver’s Magma Energy Corp. (TSX: MXY), said the largest issue in B.C. is around permitting. Magma is developing geothermal projects in Iceland, South America and the U.S., but none in Canada.
She said CanGEA isn’t necessarily looking for a handout – just more exploration permits. She noted that the B.C. government has granted only one geothermal energy exploration permit since 2004. “Yet tens or hundreds of pieces of land have been nominated or requested,” said Thompson.
Vancouver’s Sierra Geothermal Power Corp., which was acquired by Nevada’s Ram Power Corp. (TSX:RPG) this month, was granted a permit to explore a parcel of land in Knight Inlet, which is located 250 kilometres northwest of Vancouver on the Da’naxda’xw/Awaetlala Nation’s traditional land.
B.C.’s Ministry of Energy, Mines & Petroleum Resources is expected to announce two additional permit auctions this year.
Thompson used a chicken-and-egg scenario to describe geothermal development in B.C.
“There may be the will, there may be the skills, there may be resources and there may be the money, but unless you have a permit to explore your geothermal land, you can’t do anything.”
Robin Platts, a B.C. resources ministry spokesman, said in an email that prior to late-2007 interest in geothermal permits in B.C. was limited. He added that the government is working to make additional geothermal permits available, while ensuring responsible exploration and development and legislation and regulation amendments related to geothermal exploration and development are being reviewed.
CanGEA has yet to receive a formal response from the Ontario government concerning the exclusion of geothermal energy in that province’s feed-in tariff program, in which the province pays above-market energy rates to renewable energy producers. Said Thompson: “Certainly, there are feed-in tariffs around the world for geothermal energy, and they work.” •**
** Learn more about Geothermal and how it can contribute to the Ontario feed-in-tarriff program at the CanGEA Investment Forum and Networking Event October 13th in Toronto Find out more: Click Here**
Sep 21, 2010
US Geothermal updates status of development projects new wells drilled at Neal Hot Springs
September 21, 2010
TRADING SYMBOLS:
In the U. S.: NYSE Amex: HTM and in Canada: TSX:GTH
BOISE, Idaho, September 21, 2010(NYSE Amex: HTM, TSX: GTH)U.S. Geothermal Inc., a leading renewable energy development company focused on the production and sale of electricity from geothermal energy, today provides an update of its project development activities at Neal Hot Springs, Oregon; San Emidio, Nevada; Raft River, Idaho and Gerlach, Nevada .
At Neal Hot Springs, injection well NHS-10 has recently been drilled to a depth of 2,465 feet and successfully tested. Initial injection test analyses indicate that the well will sustain approximately 1,100 gallons per minute of fluid injection for the life of the project. A second injection well is currently at a depth of 1,950 feet and is expected to be completed in late September, 2010. Drilling of NHS-8, the project's third production well is also underway and is currently at a depth of 2,350 feet. NHS-8 is expected to reach the production zone before the end of September. Equipment procurement and pipeline fabrication is underway in preparation for a 30-day reservoir test scheduled to begin in mid-October, 2010. The test is designed for continuous, multi-well production, injection, and monitoring to provide data across the well field that will be integrated into the numerical reservoir model.
At San Emidio Phase 1, construction of the 11.5 MW (gross), modular power plant is underway. Three days of initial design and planning meetings were recently conducted with the equipment supplier and the construction contractor. Key milestones completed to date include execution of a purchase order for 28,000 feet of cooling water supply pipe for delivery and installation before the end of the year, site geotechnical work, and detailed site surveys. On August 5, 2010, NV Energy issued a draft interconnection agreement that will allow delivery of up to 15 MWs of power onto the transmission system. An internal evaluation of historic temperature gradient drill hole data has extended the high temperature anomaly southwest from existing production wells for a distance of 1.5 miles.
For San Emidio Phase 2 well field development, the $3.8 million U.S. Department of Energy ("DOE") cost-shared innovative exploration program continues on schedule. Surface geologic mapping by the University of Nevada-Reno has been completed and structural analysis of the mapping is underway. State-of-the-art interpretation of satellite data that measures ground surface deformation has also been completed. Preliminary results show excellent correlation between surface deformation and known producing fractures, establishing this method as an effective tool for locating wells. Field work for a high-precision seismic refraction survey is currently underway. Data acquisition is expected to be completed by mid-October and processing and interpretation will be completed by mid-November. Complete analysis of all data acquired from the three tasks will be used to locate drill targets for the Phase 2 production wells by year-end.
At Raft River, the $10.2 million DOE cost-shared thermal fracturing program continues on schedule. Nine solar powered seismic stations were installed in June and will be used to monitor the test. Construction is substantially complete on the injection pipeline that extends from the Unit 1 power plant to well RRG-9. A detailed, 3-D magnetotelluric survey is scheduled to be executed during the 4th quarter of 2010. It is expected that during the 1st quarter of 2011, a drill rig will be mobilized to set casing down to the geologic formation targeted for the thermal fracture test, and the first phase of cold water injection will commence.
At U.S. Geothermal Inc's 60% owned Gerlach Project, the final planning and drill bid evaluation is underway for production well drilling which is expected to commence in early October. Five separate, potential production zones, characterized by total lost circulation during drilling operations, have been encountered at Gerlach by past operators in four exploration wells, but none of the zones have been flow tested. One of these production targets will be drilled and fully tested. The drilling is scheduled for completion to a depth of 1,000' by late October, 2010. The Gerlach Project has 3,615 acres of energy rights, and has an extensive database from previous studies and exploration drilling. The Gerlach known geothermal resource area was ranked as the No. 3 top resource in Nevada by the United States Geological Survey and has estimated resource temperatures from geochemical analysis of 338º F to 352º F.
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project will be the company's third operating power project. The company holds geothermal energy rights to 69,500 acres comprising six advanced stage geothermal development projects. The San Emidio Phase 1 project is currently undergoing construction of a new 8.6 net MW binary cycle power plant.
Please visit our Website at: www.usgeothermal.com
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Saf Dhillon - Investor Relations
Tel: 866-687-7059
Fax: 604-688-9895
.(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 Enbridge, 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.
Sep 21, 2010
Magma Energy announces release date for 2010 audited year end results
VANCOUVER, Sept. 21 /CNW/ - Magma Energy Corp. (TSX:MXY) today announced that its audited 2010 year end results and Annual Information Form will be released on Tuesday, September 28, 2010 after markets close. A conference call and live audio webcast to discuss the results will be held on Wednesday, September 29, 2010 at 11:30 am ET (8:30 am PT).
Fiscal Year End 2010 and Q4 Results Conference Call and Webcast
---------------------------------------------------------------
Information
-----------
Date: Wednesday, September 29, 2010
Time: 11:30 am Eastern Time - 8:30 am Pacific Time
Dial-In Numbers:
North American toll-free number: 1-877-240-9772
Switzerland and United Kingdom
toll-free number: (00) 800-1234-4567
International toll number: 1-416-340-8527
UAE: please contact Magma Energy for dial-in details
Audio Webcast:
A live audio webcast can be accessed at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=161489
Playback Available for One Week Following the Call:
North American and International: 1-416-695-5800 / 1-800-408-3053
Replay Pin Number: 3548841
About Magma Energy Corp:
Magma Energy Corp. is a 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.
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)
Sep 17, 2010
Magma Energy announces findings of special committee - HS Orka transaction fully in compliance
MAGMA ENERGY ANNOUNCES FINDINGS OF SPECIAL COMMITTEE - HS ORKA TRANSACTION FULLY IN COMPLIANCE WITH ICELANDIC LAW
VANCOUVER, Sept. 17 /CNW/ - Magma Energy Corp. (TSX: MXY) reports that a Special Committee appointed by the Icelandic government to review Magma's acquisition of a 98.53% stake in Icelandic geothermal company HS Orka has concluded that Magma acted in full compliance with Icelandic law.
At an HS Orka shareholders meeting today, a new Board of Directors was elected, where three new Magma appointees were elected, including Asgeir Margeirsson as Chairman. Mr. Margeirsson commented: "I am really pleased to be elected to chair this great Icelandic geothermal power company and to receive confirmation that Magma acted at all times in compliance with Icelandic laws in its acquisition of HS Orka. We can now direct our attention to continuing to build on HS Orka's reputation as a strong independent power producer with exceptional geothermal and human resources. "
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.
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)
Sep 15, 2010
B.C. Geothermal Information Update
CanGEA is pleased to share with you the below announcement from the Ministry of Energy, Mines and Petroleum Resources announcing the Notice of Public Tender for a public disposition. Earlier this year CanGEA responded to the Knight Island Parcel in British Columbia which at that time was awarded to Sierra Geothermal Power (click here to read announcment). CanGEA has been active in lobbying the BC government to expedite the land tenure process. “In the western United States there are literally hundreds of geothermal land sales each year,” notes CanGEA Membership and Marketing Director, Nicole Robson. “BC has a long way to go to tap into it's geothermal potential but this is another small step towards the three proposed sales for 2010 by BC’s Ministry of Energy, Mines & Petroleum Resources and (The Canoe Parcel is the second disposition since 2004).
See below letter issued from BC Ministry of Energy, Mines and Petroleum Resources:
Please be informed that the Ministry of Energy, Mines and Petroleum Resources has posted a Notice of Public Tender regarding a public disposition of Crown geothermal rights on October 26, 2010 (Notice of Public Tender and map attached).
October 10th, 2010 Notice: Click here to download
October 10, Geothermal Map - Canoe: Click here to download
Please also refer to the TITLES-10-01 Information Letter to review the bid submission requirements, which can be viewed at:
http://www.empr.gov.bc.ca/Titles/OGTitles/geothermal/Pages/TITLES-10-01.aspx
The Ministry of Energy, Mines and Petroleum Resources will continue to send out email communications regarding Crown geothermal resources in British Columbia as information becomes available.
All information contained within this email isavailable to the public on the Ministryof Energy, Mines and Petroleum Resources, Titles website at:http://www.empr.gov.bc.ca/Titles/OGTitles/geothermal/Pages/default.aspx.
If you have any questions regarding information contained in this email or about Crown geothermal resources in general, please email.(JavaScript must be enabled to view this email address)or phone 250-952-0333.
Sincerely,
Garth Thoroughgood
Director, Policy and Planning
Oil and Gas Titles Branch
Titles, Aboriginal and Corporate Relations Division
