Crump Geyser Project: Nevada Geothermal Power and Ormat Agree to Extend Ormat Development Spending Commitments and Accelerated Cash Payments to NGP
VANCOUVER, Aug. 23, 2012 /CNW/ - Nevada Geothermal Power Inc. (NGP) (TSXV: NGP) is pleased to announce an Amendment to the Agreement between the Company and Ormat Nevada, Inc. (Ormat) regarding the Crump Geyser Project located in Lake County, Oregon. Under the Amended Agreement, development expenditure commitments by Ormat of US$15M, of which approximately $7M has been expended, are extended to June 30, 2014. Ormat cash payments to NGP previously totaling $2.5M are increased to $3.0M ($300,000 previously paid) with committed payments of $500,000 due on execution of the Amendment (paid) and on October 29, 2012. The balance of $1.7M is due on or before June 30, 2014.
Work at the Crump Geyser Project is conducted through Crump Geothermal Company LLC (CGC), a holding company owned 50:50 by Ormat and NGP with funding provided by Ormat. Ormat, as manager, determined that a suitable Power Off-take Agreement is not currently available and that additional time is needed to complete the Crump geothermal resource evaluation.
Geothermal leaseholds of the Joint Venture total 35 square miles covering an extensive hot spring system including the Crump Geyser area in the Warner Valley Rift Basin. Aeromagnetic and seismic surveys over the lease area show extensive faulting within permeable volcanic stratigraphy underlying the wide valley floor with prominent faults oriented northeast and northwest. An historic well at Crump Geyser and two additional exploration wells by CGC encountered 265°F thermal water at shallow depths along the west side of the Warner Valley. An MT resistivity survey and further drilling is planned to explore for potential higher temperature resources (300-320°F).
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 49.5 MW Faulkner 1 geothermal plant in Nevada. It is a 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, and North Valley in Nevada, New Truckhaven in California, and Crump Geyser, in Oregon. These properties are at different levels of exploration and development.
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.
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SOURCE: Nevada Geothermal Power Inc.For further information:
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng.
President & CEO