News
Jun 07, 2011Alterra Power Completes Sale of 25% Interest in HS Orka to Icelandic Pension Funds
Alterra Power Completes Sale of 25% Interest in HS Orka to Icelandic Pension Funds
VANCOUVER, June 1, 2011 /CNW/ - Alterra Power Corp. (TSX:AXY) reports that its wholly-owned subsidiary Magma Energy Sweden AB has now closed the previously announced agreement to sell a 25% stake in its 98.5%-owned Icelandic geothermal power company HS Orka hf to Jarðvarmi slhf, a company owned by a group of 14 Icelandic pension funds, for ISK 8.06 billion (approximately US $69.8 million). Jarðvarmi will hold fulsome minority shareholder rights, including a right to purchase Magma Sweden's interest in HS Orka should it elect to divest its stake in the future
Ross Beaty, Alterra's Chairman and CEO, commented, "I am very pleased to welcome these Icelandic pension funds into HS Orka as exceptional long term partners in its future. They will better enable development of the company's outstanding growth prospects through their very strong financial condition and their intimate knowledge of Icelandic economic and social conditions."
About Alterra Power Corp.
Alterra Power Corp is a leading global renewable energy company, formed in 2011 through the merger of Magma Energy Corp and Plutonic Power Corp. We produce 1,800 GWh of clean power annually from 191 MW of geothermal capacity in Iceland and Nevada, as well as 94 MW of run-of-river hydro and 73 MW of wind capacity in British Columbia. We have an extensive portfolio of exploration and development projects, a skilled international team of explorers, builders and operators as well as the strong financial capacity to support our aggressive growth plans.
About HS Orka
HS Orka is the largest privately owned energy company in Iceland producing 9% of the country's power needs and 10% of the country's heating 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 could increase HS Orka's geothermal power production to 405 MW by 2016.
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, prospects for closing of the sales described in the Share Purchase Agreements, the fulfillment of all conditions precedent to the obligation of the parties under the agreements, required consents and third party approvals. This news release also contains statements with respect to our plans to expand our operations and HS Orka's plans to expand their geothermal power production, management's expectations regarding our growth, business prospects and opportunities and geothermal energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.
Jun 07, 2011
Alterra Power Sells 25% of Icelandic Subsidiary HS Orka
Alterra Power Sells 25% of Iceland Subsidiary HS Orka to Icelandic Pension Funds and Buys 1.5% from Icelandic Municipalities.
VANCOUVER, May 31, 2011 /CNW/ - Alterra Power Corp. (TSX: AXY) announces the signing by its wholly-owned subsidiary, Magma Energy Sweden AB ("Magma Sweden"), of a Share Purchase Agreement with Jarôvarmi slhf ("Jarôvarmi"), a company owned by a group of 14 Icelandic pension funds. This transaction was previously announced on April 18, 2011 and has now been formalized with the completion of a definitive Share Purchase Agreement. Under the terms of the agreement, Magma Sweden will sell a 25% interest in its 98.5%-owned Icelandic geothermal power company HS Orka hf to Jarôvarmi for ISK 8.06 billion (approximately US $69.8 million). The transaction is expected to close by June 2, 2011.
Magma Sweden was advised on the transaction by Saga Investment Bank based in Iceland.
Magma Sweden has also signed a Share Purchase Agreement with four Icelandic municipalities to purchase a 1.5% interest in HS Orka hf for ISK 475 million (approximately US$ 4.1 million). This transaction is expected to close by June 9, 2011.
Upon completion of the transactions, Magma Sweden will own a 75% interest in HS Orka and the remaining 25% will be owned by the Icelandic pension funds' company Jarôvarmi.
Jarôvarmi will also hold an option until February 10, 2012 to purchase new shares from HS Orka treasury that, if exercised, would increase its stake in HS Orka by 8.4% at a cost of ISK 4.7 billion (approximately US $40.7 million). Assuming the option is exercised, Jarôvarmi would hold 33.4% of HS Orka. Jarôvarmi will hold significant minority shareholder rights to appoint Board members and participate in the major decisions of HS Orka as long as it continues to hold at least a 22.5% interest.
About Alterra Power Corp.
Alterra Power Corp is a leading global renewable energy company, formed in 2011 through the merger of Magma Energy Corp and Plutonic Power Corp. We produce 1,800 GWh of clean power annually from 191 MW of geothermal capacity in Iceland and Nevada, as well as 94 MW of run-of-river hydro and 73 MW of wind capacity in British Columbia. We have an extensive portfolio of exploration and development projects, a skilled international team of explorers, builders & operators and strong financial capacity to support our aggressive growth plans.
About HS Orka
HS Orka is the largest privately owned energy company in Iceland producing 9% of the country's power needs and 10% of the country's heating 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 could increase HS Orka's geothermal power production to 405 MW by 2016.
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, prospects for closing of the sales described in the Share Purchase Agreements, the fulfillment of all conditions precedent to the obligation of the parties under the agreements, required consents and third party approvals. This news release also contains statements with respect to our plans to expand our operations and HS Orka's plans to expand their geothermal power production, management's expectations regarding our growth, business prospects and opportunities and geothermal energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.
Jun 01, 2011
CanGEA Announces Its 4th Annual Conference & Investment Forum
The geothermal event of the year in Canada has just been announced by the Canadian Geothermal Energy Association (CanGEA). CanGEA’s 4th Annual Conference & Investment Forum is taking place at the One King West in Toronto, Canada, September 14-15, 2011.
The program promises a great line up of speakers and topics that will cover the complete value chain of geothermal development. Speakers will highlight development activities in Canada, Canadian activities internationally, marketing/ PR & social media policy, geothermal education in Canada, exploration, drilling and related services, power plant technology options, finance & investment, and the role of utilities and the Canadian natural resources sector in geothermal development.
Date: Wednesday, September 14 to Thursday, September 15, 2011
Venue: One King West Hotel & Residence, 1 King West, Toronto/ ON, Canada
Exhibition: The event will also provide a showcase for companies in form of an exhibition area that creates an opportunity for the promotion of your company, its activities and services.
Workshops: Preceding the event will be two half-day workshops, one for an “Energy for the third millennium: geothermal resources, technologies and applications”, and the other one on the “Canadian Geothermal Code for Public Reporting”, organized by CanGEA to provide an introduction and guidance on geothermal energy to an audience new to geothermal energy.
Rates: starting at $540 for members, $690 for non-members, and $320 for government/ non-profit and academics (Early bird prices until July 31, 2011)
Exhibition: Reserve a space from $900
Call for sponsors: CanGEA offers great sponsorship packages for the event that provide a unique opportunity to promote your company, its activities, products and services (details on www.cangeaevents.ca)
Hotel: One King West, Toronto, Conference discount: CanGEA – Canadian Geothermal Energy Association or Group Code 10L42O
Event website: www.cangeaevents.ca
May 26, 2011
Ram Power closes offering for proceeds of $70.6m
In a release, “Ram Power, Corp. (TSX:RPG) announces that it has completed its previously announced offering of 127,272,727 units. The Offering was made pursuant to an underwriting agreement between the Company and a syndicate of underwriters led by Cormark Securities Inc., and including Raymond James Ltd., Jacob Securities Inc., National Bank Financial Inc. and Wellington West Capital Markets Inc..
The Units were offered at a price of $0.55 per Unit. Each Unit is comprised of one common share of the Company and one common share purchase warrant. Each Warrant will be exercisable for one Common Share for a period of 36 months from the completion of the Offering at the price of $0.72 per Warrant, subject to earlier termination in the event that the 20 trading day volume weighted average trading price of the Common Shares is equal to or greater than $1.08.
Pursuant to the Underwriting Agreement, Ram Power has also granted to the Underwriters an option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 9.8 million Units for the purposes of satisfying over-allotments, if any, and for market stabilization purposes. Concurrently with the closing of the Offering, the Underwriters partially exercised this over-allotment option for an additional 1,145,373 Units. As a result, the gross proceeds raised today by the Company was $70,629,955.
The net proceeds from the Offering will be primarily used to fund the remaining equity requirements for the construction of the Company’s San Jacinto-Tizate project site near Leon, Nicaragua and for working capital purposes.
Of these net proceeds, US$10 million was used today to repay an additional bridge loan that the Company borrowed earlier this week from Newberry International Holdings Inc., Exploration Capital Partners 2000 Limited Partnership and Helmsdale Bank Corp. This additional bridge loan was put into place by the Company in order for it to pay for critical path items associated with the construction of the Phase I expansion at the Company’s San Jacinto-Tizate project and to continue resource development at San Jacinto-Tizate for the Phase II expansion.
The Warrants will trade on the Toronto Stock Exchange under the symbol “RPG.WT”"
Source: Company release via CNW
May 18, 2011
SKM Prepares Code Compliant Report For Argentinian Project
In a release by the company, Australian Earth Heat Resources (ASX: EHR) announces it “has received a very positive outcome at the Copahue project in Argentina, after a review by Sinclair Knight Merz (SKM).
Copahue received a 150% jump in total resources interpreted from SKM, under the new Canadian Geothermal Code [for Public Reporting] (CanGEA) classified resource estimate, in terms of electricity generating capacity and stored heat in place (based on P50 probability).
The new Copahue resource under Canadian Geothermal Code is:
- Measured Resource; 19 generating capacity (MWe), 700 stored heat in place (PJ);
- Inferred Resource, Vapour Zone; 55 generating capacity (MWe), 2500 stored heat in place (PJ); and
- Inferred Resource; deep liquid zone 190 generating capacity (MWe), 7300 stored heat in place (PJ).
The outcome provides for significant additional scope for development at the project, with the potential energy generated for consumers in the Neuquen Province of Argentina.
Of particular significance is the ‘behind pipe’ verification which provides a boost to the certainty of the stage 1 plant size and reduces the immediacy of resource extension drilling.
Earth Heat said that the scope and objectives of the Stage 1 concept study will be released this week, in light of the new resource figures.
The Copahue project is strategically placed 55 kilometres to the national electricity market interconnector, with a sealed bitumen road to the site from Neuquen City. Other infrastructure includes power lines connected from the site to the nearby town of Caviahue, a plentiful water supply with oil field services and equipment in the Province. The population of the Neuquen Province is 475,000.”
May 13, 2011
Magma Energy Corp. and Plutonic Power Corporation complete merger
Pursuant to the Arrangement, Magma has acquired all of the outstanding shares of Plutonic on the basis of 2.38 common shares of Magma and Cdn.
In connection with the Arrangement, Magma will change its name to "Alterra Power Corp." and its common shares will, subject to receipt of final approval of the
Subject to TSX confirmation, Plutonic common shares are expected to be delisted from trading on the TSX as of the close of business on
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The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.
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, including the expected date of the change of Magma's name and trading symbol and the expected date for the delisting of Plutonic common shares.
These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. Plutonic and Magma, respectively, do not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.
May 12, 2011
Project Status Report by NevadaGeothermal Power Inc.
NEVADAGEOTHERMAL POWER INC. – PROJECT STATUS REPORT
VANCOUVER, B.C. (May 11, 2011) – Nevada Geothermal Power Inc. (NGP) (TSX-V: NGP, OTC-BB: NGLPF) is pleased to update the status of on-going work.
Nevada Geothermal Power is a leading geothermal developer focused on geothermal power development in the US for continued growth. World events, including political instability in Middle East oil producing regions and the tragic nuclear power plant failure in Japan provide renewed impetus for the U.S. Government plan to encourage the construction of clean, renewable power plants, the development of new clean energy technology and the strengthening of the power grid to bring new power to market. At present, the U.S. is the largest producer of geothermal power in the world with over 3000 MW of geothermal power capacity on line, 1600 MW of new geothermal capacity under development and over 5000 MW of identified geothermal resources for potential future development (Geothermal Energy Association, 2011).
NGP operates the 49.5 MW Faulkner 1 power plant at the Blue Mountain Geothermal Project, Humboldt County, Nevada. Near term growth is planned to come from development of the Crump Geyser (Oregon) and Pumpernickel (Nevada) properties, as well as project acquisitions in Imperial Valley (California) from Iceland America Energy, Inc. (IAE).
NGP has sufficient cash reserves to enable further development of its plans through 2011. The Company is well advanced in its program to acquire three new geothermal properties in the Imperial Valley from IAE and in its resource development in a joint venture at Crump Geyser with Ormat Nevada Inc. The Company is also planning to further pay down mezzanine debt related to the Faulkner 1 plant.
The economics of the Faulkner 1 geothermal plant continue to be adversely affected by lower than anticipated power production and a forecasted gradual temperature decline. The Company is currently further stimulating and testing five wells, as well as re-modeling the reservoir to update its forecast of power production. The Company presently believes the most reasonable power production forecast is 35 MW (net) declining approximately 2.5% per year. If there is no improvement in this forecast the Company will not be able to meet the terms of its loan with EIG Global Energy Partners (EIG), formerly the Trust Company of the West (TCW), and accordingly, in addition to applying for a federal government cash grant and assessing a tax-assisted financing, the Company has begun discussions with EIG in order to make changes to the capital structure.
The current balance on the EIG loan is approximately $88 million. NGP anticipates repaying a portion of the debt with proceeds of approximately $7.5 million from a potential tax grant based on additional $25 million of qualified well field expenditures since the plant was placed in service. In addition, NGP will explore its strategic options and has engaged Marathon Capital to assist with the structuring and potential placement of a $30-50 million tax-assisted financing. The financing requires reaching an agreement with EIG on new terms that include some conversion of debt to Faulkner 1 Holdco equity, or similar adjustments, as well as receiving a satisfactory updated resource report from independent consultants, GeothermEx Inc., upon the completion of current well tests.
The Company is advancing the following development projects:
Blue Mountain, Nevada
Plant production has been steadily improved to current levels of 35-37 MW (net) or 46-48 MW (gross) output by additional well field drilling since October 2009 when the plant was placed in service. Seven full-sized geothermal wells were completed under the supplemental drilling program, and four have been connected to the Faulkner 1 power plant. Three of these wells (55-15, 58-11, and 91-15) are in operation as injection wells and a fourth well (44-14) is connected to the plant and has been used intermittently for both production and injection since its completion. The remaining wells (41-27, 34-23, 86-22) located southwest of the production area showed marginal permeability associated with a weak thermal zone and are not connected to the plant at this time. Wells 34-23 and 86-22, along with previously-drilled, sub-commercial production test wells 38-14, 89-11, and 44-14, are being stimulated by cold water injection and oil field fracturing techniques in an attempt to improve injection capacity/production capacity. Test results will be incorporated into an updated reservoir report needed to support the tax-assisted financing referred to above.
NGP plans to continue with exploration drilling of the “Western” and “South Blue Mountain” geothermal target areas.
Iceland America Asset Purchase, Imperial Valley, California
Imperial Valley is a premier address for geothermal development in the US with 500 MW of power capacity on line. Active new power development projects include the 50 MW Hudson Ranch Project which is under construction and the 50 MW Orita Project where Ram Power has released encouraging results from two deep development test wells.
The agreement to purchase the New Truckhaven, East Brawley and South Brawley high temperature geothermal projects is progressing and is expected to close shortly. NGP believes that commercial reservoirs may be present at the New Truckhaven and the East Brawley Projects based on extensive past work including development test drilling in both areas. Iceland America’s East Brawley leases are centered on a large heat anomaly immediately south of current drilling by Ram at the Orita Project.
NGP project planning has been initiated so that development permit work and infrastructure studies can commence expeditiously after the acquisition is complete.
Crump Geyser, Oregon
Crump Geothermal Company (CGC), a joint venture between Nevada Geothermal Power and Ormat Nevada, Inc., completed and tested a 5000-foot deep exploration well (34-3) at the Crump Geyser property at a location along the range front to the south of Crump Geyser. A shallow thermal outflow zone not suitable for production was intersected; however, results indicate the well can be used for injection. Planning is in progress to drill additional exploratory production test wells.
CGC obtained extensive temperature gradient drilling data over the project area from an earlier exploration program which outlines the shallow thermal anomaly and obviates the need for further shallow gradient drilling work at Crump. Consequently, CGC submitted a revised deep slim well drilling program along with a progress report covering geophysical (gravity, seismic, aeromag) surveys completed, details of the earlier gradient well program, and environmental/permitting work to the Department of Energy (DOE) relative to the on-going $3.4 million, cost- shared exploration program.
A deep well drilling program to test targets down to 5000 feet has commenced. Power market and transmission access feasibility studies are underway.
Pumpernickel, Nevada
The Pumpernickel Project has been extensively explored and is ready for development drilling. Three production test well sites are permitted and a level drill pad has been constructed at one location. A water license has been awarded for future power plant operations enabling a water cooled power plant and increasing power production during summer months. NGP is seeking a financial partner for further project development.
A $3.2 million DOE cost-shared exploration program has been transferred from North Valley to the Pumpernickel Project. NGP will move ahead with environmental studies and a shallow soil-gas sampling program leading to two deep confirmation holes in collaboration with the DOE.
North Valley, Nevada
A $300,000 deep confirmation well program is scheduled to commence shortly pending receipt of access road permits at North Valley in a central location within a 10-square-mile, high grade thermal anomaly. The well is intended to measure subsurface temperatures and to obtain geothermal brine samples and better define the potential geothermal resource temperature and field capacity.
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 leasehold interests in five properties: Blue Mountain, Pumpernickel Valley, Edna Mountain and North Valley 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.
May 10, 2011
Plutonic Power Corporation Receives Final Court Order For Transaction with Magma Energy
As previously announced on
Completion of the Arrangement remains subject to certain conditions precedent. The completion of the Arrangement is expected to occur on or about
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Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the closing of the Arrangement. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. Plutonic and Magma do not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.
May 09, 2011
CanGEA co-founding International Geothermal Business Coalition
May 9, 2011 - In an historic accord, the members of several leading national geothermal trade and business associations have joined together to establish an international geothermal business coalition.
The new International Geothermal Business Coalition, co-founded by the European Geothermal Energy Council (EGEC), the U.S. Geothermal Energy Association (GEA), the Canadian Geothermal Energy Association (CanGEA), the Australian Geothermal Energy Association (AGEA), and the Chilean Geothermal Energy Association, will represent the leading companies in developing geothermal resources to meet energy needs across the world.
The new geothermal coalition will work to expand efforts to utilize these valuable geothermal resources in every nation. With the vast potential that geothermal has to create clean, renewable base-load energy and bring jobs to the nations that embrace it, the coalition leaders will work to ensure that geothermal resources are not ignored in national and international energy plans.
Joint Declaration by the groups forming the International Geothermal Business Coalition
Apr 27, 2011
CanGEA Member Nexen Reports Solid First Quarter and Progress on Several Growth Milestones
Calgary , Alberta April 27, 2011- Nexen Inc. reported solid first quarter 2011 financial results today, generating increased cash flow from operations and net income over the fourth quarter of 2010.
The company also reported progress on several important growth milestones, including Board of Director approval to proceed with the development of Golden Eagle. At Long Lake, initiatives to increase independence between our SAGD and upgrader facilities were advanced. In the Horn River shale gas basin, the drilling of a nine-well program resulted in a new regional record for the fewest days to successfully drill a horizontal well. In addition, we completed our non-core asset disposition program with the sale of our investment in Canexus, contributing to the $1.7 billion generated from the disposition program.
"We had a strong start to the year and our portfolio is delivering solid financial results. We completed our divestment program, which narrowed our business focus, strengthened our balance sheet, and our growth strategies are on track," said Marvin Romanow, President and Chief Executive Officer. "On the operational side, the Board's approval of our Golden Eagle development is a significant step forward in advancing our plans to deliver value from our portfolio of development opportunities."
For full release visit Nexen's website
