VANCOUVER, Feb. 9, 2017 /CNW/ - Alterra Power Corp. is pleased to announce successful completion of the deep drilling program at its Icelandic subsidiary HS Orka's Reykjanes geothermal field. Hole IDDP2 was completed at a record depth of 4,650 meters. Initial well readings (427°C temperature, 340 bars pressure) indicate supercritical conditions at the base of the well, comprising significantly higher energy content versus conventional high-temperature geothermal steam.
Based on these early readings, if the well is able to be utilized for electric production, it may produce as much as 30-50 MW of output, which would be directed to HS Orka's Reykjanes plant. The final production potential for the well will not be known until late 2018 after further tests and research.
Ásgeir Margeirsson, CEO of HS Orka, said, "We're pleased to complete this well with such remarkable early-stage results. We expect the final down-well temperatures to be much higher than 427°C, which could lead to production capacity of several regular geothermal wells."
Ross Beaty, Alterra's Executive Chairman, said, "I congratulate our strong Icelandic team and their partners for this successful landmark program. This deep drilling program has profound significance for our own energy output and growth opportunities at Reykjanes and for other geothermal operations in Iceland and elsewhere."
HS Orka led the deep drilling program in collaboration and joint funding with Statoil, two other Icelandic power companies and the Icelandic National Energy Authority. Grants for the program were also received from the European Union and others.
Further information about the Iceland deep drilling project is available on the HS Orka and Alterra websites.
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating eight power plants totaling 825 MW of generation capacity including British Columbia's largest run-of-river hydro facility and largest wind farm, the recently completed Shannon and Jimmie Creek projects, two geothermal facilities in Iceland and a solar facility in Indiana. Alterra owns a 385 MW share of this capacity, generating over 1,700 GWh of clean power annually. Alterra also has an extensive portfolio of exploration and development projects and a skilled team of developers, builders and operators to support its growth plans.
Alterra trades on the Toronto Stock Exchange under the symbol AXY.
About HS Orka hf
Alterra owns 66.6% of HS Orka, the largest privately owned energy company in Iceland. HS Orka supplies 7% of the country's power needs and approximately 11% of the country's heating needs. Installed geothermal power capacity is 174 MW from the Svartsengi and Reykjanes power plants. In addition, HS Orka generates 190 MW of thermal energy for district heating. HS Orka also owns a 30% interest in the Blue Lagoon, a tourist resort that adjoins our Svartsengi power plant in Iceland.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of applicable securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include the potential for and amount of future power output from the newly drilled well, the ability to successfully tie such potential power into the Reykjanes plant, the expectation of higher down-well temperatures, the potential impact on future drilling programs and growth opportunities. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions include the expected timing for realizing the output capacity of the well, if any, the imprecise nature of estimation of renewable power resources or power generation output and recoveries, including the difficulty in assessment until a geothermal resource is actually accessed and tested by production wells, assumptions concerning and fluctuations related to, temperature and composition of underground fluids, risks related to additional financing to achieve growth and development, in addition to those set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended December 31, 2015. Although Alterra has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate and undue reliance should not be placed on forward-looking information. Except as required by law, Alterra undertakes no obligation to update any forward-looking information to reflect new information, subsequently or otherwise.
SOURCE Alterra Power Corp.
For further information: Peter Lekich, Corporate Communications, Alterra Power Corp., Phone: 604-235-6719, Email: [email protected]