OCKHAM'S RAZOR
12 years ago
The Circular also contains a Report to Shareholders from the President of the Company, which provides an update on the status of certain material developments concerning the Company, including:
a) a discussion of the structure of the debt encumbering the Blue
Mountain project in Nevada, and the Company's efforts to eliminate the
mezzanine debt and recapitalize the Company;
b) a summary of certain steps that have been taken to reduce operating
costs, including termination of the Company's registration and OTC
listing in the United States, which will eliminate costs of SEC and SOX
reporting requirements;
c) a proposed share consolidation that will be considered at the
Meeting. The consolidation, if approved and implemented, is intended to
facilitate the Company's access to equity financing, which is vital to
sustain the Company;
d) re-confirmation of the Company's shareholder rights plan, which will
be considered at the Meeting; and
e) an update concerning the status of certain geothermal projects,
including Blue Mountain (Nevada), Crump Geyser (Oregon), New Truckhaven
(California) and the Pumpernickel, North Valley and Edna projects
(Nevada).
Shareholder and investors who are interested in any of the foregoing matters should review the Report to Shareholders contained in the Circular.
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 six properties: Blue Mountain, Pumpernickel Valley, Edna Mountain 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.
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.
Nevada Geothermal Power Inc. Brian D. Fairbank, P. Eng. President & CEO http://www.nevadageothermal.com
Information Contact: Nicole Smith Nevada Geothermal Power Inc. Telephone: 604-688-1553 X123 Toll Free: 866-688-0808 X123
SOURCE Nevada Geothermal Power Inc.
Huggy Bear
13 years ago
Article regarding Nevada Geothermal in this Sundays Arkansas Democrat Gazette, I'm sure it appeared in many Gannett papers across the country.
WASHINGTON — In a remote desert spot in northern Nevada, there is a geothermal plant run by a politically connected cleanenergy startup that has relied heavily on an Obama administration loan guarantee and is now facing financial turmoil.
The company is Nevada Geothermal Power, which like Solyndra, the now-famous California solar company, is struggling with debt after encountering problems at its only operating plant.
After a series of technical missteps that are draining Nevada Geothermal’s cash reserves, its own auditor concluded in a filing released in late September that there was “significant doubt about the company’s ability to continue as a going concern.”
It is a description that echoes the warning issued in 2010 by auditors hired by Solyndra, which benefited from the same Energy Department loan guarantee before its collapse in August resulted in criticism of the Obama administration.
The parallels between the companies illustrate the risk inherent in building the clean-energy marketplace in the United States, government officials and industry experts say. The loan guarantee program exists because none of these ventures is a sure bet.
There are important differences between the fate of Nevada Geothermal and Solyndra, the maker of solar panels that has filed for bankruptcy.
The amount of money the federal government has at stake with Nevada Geothermal — a loan guarantee of $79 million plus at least $66 million in grants — is much smaller than the $528 million investment in Solyndra. There have been no allegations of wrongdoing by Nevada Geothermal or its Blue Mountain, Nev., plant.
Executives of the company express confidence that they can recover and say the government investment is not at risk, despite the challenges they face because of a high debt load and lower-than-expected energy output at their plant.
“We are here,” said Brian Fairbank, the chief executive, who like other company executives works out of Vancouver, British Columbia, where Nevada Geothermal has corporate offices. “We’re doing OK.”
An Energy Department spokesman said he considered the Nevada Geothermal project a success, noting that the company had a long-term contract to sell its power.
“The Blue Mountain power plant is up and running, generating clean, renewable power and has been consistently making its loan payments on time and in full,” the spokesman, Dan Leistikow, said.
The company also did not hire half a dozen Washington lobbying firms, as Solyndra did, and there is no evidence of White House involvement in pushing the project.
But the Nevada Geothermal project has benefited from the support of a bipartisan collection of Nevada politicians, most notably Sen. Harry Reid, a Democrat and the Senate majority leader, who has called his home state the “Saudi Arabia of geothermal energy.”
Nationally, geothermal energy produces only about 3,000 megawatts of power, a minuscule slice of the national electricity supply. The Nevada Geothermal plant generates just 35 megawatts — enough to serve about 35,000 homes for a year — and the company has only 22 employees in the state.
But Reid has taken the nascent geothermal industry under his wing, pressuring the Department of Interior to move more quickly on applications to build clean-energy projects on federally owned land and urging other members of Congress to expand federal tax incentives to help build geothermal plants, benefits that Nevada Geothermal has taken advantage of.
“This project is exactly the type of initiative we need to ensure Nevada creates goodpaying jobs,” Reid said in a statement in April 2010, after he visited the company’s Nevada plant. That was two months before the project even got conditional approval for the Energy Department loan guarantee.
During the tour, Reid had a chance to see electric generation equipment installed by a company called Ormat Technologies, which is a Nevada Geothermal partner. Ormat’s lobbyist in Washington, Kai Anderson, and one of the company’s top executives, Paul Thomsen, are former aides to Reid.
Last month, again with Reid’s support, Ormat secured its own Energy Department loan guarantee, worth $350 million, to help support three other Nevada geothermal projects that are expected to produce 113 megawatts of power.
Reid has received some support from the geothermal industry, in the form of at least $43,000 worth of campaign contributions since 2009, according to an analysis of federal campaign finance records.
Adam Jentleson, a spokesman for Reid, said the senator was proud of his work as an advocate for geothermal power and a broad array of other clean-energy projects in his state. But Jentleson, and the Energy Department spokesman, said Nevada Geothermal had not received, nor been offered, any special treatment.
“If projects like this did not contain a certain level of risk, alongside their enormous potential for creating jobs and generating clean energy, there would be no need for the bipartisan loan guarantee program,” Jentleson said.
An Obama administration official also pointed out that the Nevada Geothermal project won the enthusiastic support of prominent Republicans in the state, and of the Bush administration.
When Nevada Geothermal was finishing construction on its plant in late 2009, there was ample reason for optimism. Boiling waters are not far from the surface at the remote site, three hours outside Reno. The company had a 20-year contract to deliver power to the state’s largest electric utility company.
But even before it applied for the Obama administration incentives, problems at the plant cropped up. Company executives have variously predicted the plant could generate as much as 45 megawatts, after accounting for energy needed to power it.
Yet when the plant started up in October 2009, only 27 megawatts of net power were initially generated from the hot water pumped from the earth. That was not enough for the company to honor its commitment to the electric utility company, or to pay back a $91 million loan — carrying 14 percent interest — that it has with a Washington-based investment firm.
By drilling new wells to produce more steam at Blue Mountain, the company has been able to get the net power output up to a steady 35 megawatts. But, as the annual report released in late September reiterated, that was still not enough production to cover the company’s loans and operating costs.
Geothermal projects in general have encountered complications in recent years. They are a much riskier enterprise than solar panels or wind turbines, because the drilling can take several years and the power output is not guaranteed until the work is complete.
That explains why in recent months, shares of geothermal companies have collapsed, dropping far more than the shares of most renewable-energy businesses. Nevada Geothermal has traded lately for 10 cents a share or less, down from $1.24 when its plant opened in 2009.
Obama administration officials knew about most of these difficulties before the Energy Department agreed in September 2010 to partly guarantee a second major loan to Nevada Geothermal, worth $98.5 million.
Nevada Geothermal executives, meanwhile, are working to renegotiate the company’s $91 million, high-interest loan to avoid a default, which could come as soon as December. They have teamed up with Ormat to drill at a new Nevada site, and hope perhaps to do future drilling at the Blue Mountain site to increase the energy output there.
10 bagger
13 years ago
NGLPF.. $0.1225...Company Information..
Nevada Geothermal Power Inc. (OTCBB: NGLPF; TSX.V: NGP) is an experienced renewable energy producer focusing on the development of CLEAN electrical power from high temperature geothermal resources in the United States.
NGP holds leasehold interests in eight geothermal projects located in Western United States:Blue Mountain,Pumpernickel, North Valley , and Edna Mountain - in Nevada, New Truckhaven, East Brawley, and South Brawley - in California and Crump Geyser- in Oregon.
NGP's first geothermal power plant, Blue Mountain Faulkner 1, started generating electricity in October 2009. The Company holds a 100% interest of the Blue Mountain geothermal leases just 20 miles (32 km) west of Winnemucca in north central Nevada. This geothermal field has advantages over many other geothermal projects: the geothermal resource is close to the surface (shallow), it has easy road access; and is situated within 21 miles (33 km) of the electrical transmission grid.
Blue Mountain was first discovered in the 1980's while searching for gold. Recognizing that the potential for generating electrical power out-weighed the property's bullion prospects, company president Brian Fairbank moved to tie up the ground. With over 30 years of geothermal power industry expertise, he had no problem attracting an international team of industry experts.
With a 20-year Power Purchase Agreement with NV Energy (formerly Nevada Power Company), NGP's flagship project, Blue Mountain 'Faulkner I' geothermal power plant, turned on the power in the Fall of 2009 and is generating revenue!
NGP recently acquired the New Truckhaven, East Brawley and South Brawley geothermal projects in the Imperial Valley, California. NGP's leasehold covers a broad thermal anomaly identified in 1500-ft deep gradient holes and two deep production test holes. The largely undeveloped area is readily accessible by paved Highway 86 and within a few miles of power transmission lines providing access to the power markets in southern California.
NGP believes that a 30-50 MW steam flash or binary power plant can be developed for the low-salinity New Truckhaven resource using conventional technology.
The advanced stage East Brawley property includes key leases in the central part of the thermal anomaly immediately south of the current drilling by Ram Power at the Orita project. Commerical productivity has been demonstrated in several deep wells.
NGP also acquired 50% leasehold in the South Brawley geothermal area. NGP will determine if a secure land position can be established. No physical work is planned in the immediate future.
In addition to the Blue Mountain and Imperial Valley geothermal projects, NGP has geothermal rights in Crump Geyser -- in Oregon, and Pumpernickel, North Valley and Edna Mountain in Nevada.
NGP has commenced development drilling at Crump Geyser on a Joint Venture with Ormat to develop a 30 MW plant by the end of 2013. GeothermEx, Inc. (May 2006) estimates a minimum of 40 MW potential and most likely 60 MW potential at Crump Geyser, Oregon located in Oregon. NGP is looking for similar acquisitions to build its inventory of geothermal reservoirs.
At Pumpernickel, NGP initiated an exploratory drilling program in spring 2005 with partners (including the U.S. Department of Energy). In May 2010 NGP solidified its land holdings in the Pumpernickel Valley with the acquisition of Edna Mountain. Edna Mountain is located within a favorable geological setting with significant evidence of past and present hydrothermal activity.
Located in the prolific power producing area dubbed the "Corridor of Heat", the North Valley geothermal site has the potential for the discovery of a geothermal reservoir suitable for electric power generation. Temperature gradients greater than 200 degrees C/km are indicated throughout the leased area in ten wide-spaced drill holes by Phillips Petroleum in the early 1980's.
As NGP continues to grow and evolve, it is poised to become a principal supplier of geothermal energy in North America through exploration, development and operation.
Geothermal energy is nothing new to the United States:
With 77 geothermal plants totaling 3086 MW of power capacity on an annual basis.
The. U.S. has implemented legislation requiring power producers to increase their percentage output of renewable power to 25% in Nevada and Oregon (by 2025) and to 33% in California (by 2030).
Government support through American Reinvestment and Recovery Act and federal incentive programs
Geothermal is Natural, Clean, Sustainable Power
Geothermal power is a renewable and cost effective alternative to coal, oil and natural gas fired power plants. Geothermal energy, which is literally defined as "heat from the earth", is natural, clean, renewable, reliable, efficient and inexpensive to operate.
Geothermal reservoirs of heated water occur in regions of high heat flow and fractured, permeable rock formations. Fractures in the earth's crust allow hot groundwater to rise towards the surface where it may become sealed by impermeable rock. Surface manifestations of geothermal reservoirs include hot springs and geysers.
To access the hot water resource, production wells are typically drilled 4000 to 8000 feet below the surface. The heated water is brought to surface where it is flashed to steam; the steam is used to drive the turbines to generate electricity; and, the residual water is cooled and re-injected underground to recharge the reservoir. There are no surface discharges and very little or no emissions.
Geothermal the Alternative Energy of Choice
Geothermal power plants offer outstanding operational efficiency, low cost, base-load energy (24/7, 365 days a year), 95% + capacity for geothermal compared to 65% for hydro, coal, nuclear and 30% for wind. Unlike gas, coal or oil power plants, geothermal plants require no fuel to operate and thus are unaffected by fluctuations in fuel prices.
10 bagger
13 years ago
Tue Sep 27, 2011
Reports Results for the Year ended June 30, 2011 and Project Status Report
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Vancouver, B.C. (September 27, 2011), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) today announced results for the year ended June 30, 2011. Gross margin for the year was $12.6 million and the net loss was $8.6 million. The full financial results are available at www.sedar.com and on the Company's website at http://www.nevadageothermal.com.
The year ended June 30, 2011 was the first full year that the Company's Blue Mountain geothermal power plant was in operation. Power production for the year averaged 45 MW (gross), 35 MW (net), generating revenue of $24.9 million and EBITDA of $15.2 million.
The Company's President and CEO, Mr. Brian Fairbank, commented on the results, saying that, "The Blue Mountain power plant continues to deliver solid operational results, despite current difficulties with the funding structure which resulted in the net loss recorded. We continue to believe that the wellfield is capable of higher power production, and are working towards making this a reality."
Highlights
• Three properties in California's Imperial Valley purchased from Iceland America Energy
• $98.5 million 4.14% financing with John Hancock, partially guaranteed by US DOE
• $7.9 million grant received under the American Recovery and Reinvestment Act of 2009 ("ARRA") subsequent to year-end
• Crump Joint Venture with Ormat
• Discussions with EIG regarding potential changes to loan terms continue, with a view to enabling a tax-assisted financing
Mr. Fairbank said, "We are continuing to develop our pipeline of geothermal properties, as well as strengthening our management team, in order to be well placed to take advantage of the opportunities that exist in the geothermal energy sector."
Project Status Report
Wellfield optimization is ongoing at Blue Mountain. Long range outlook model outputs have been recently completed in support of banking requirements.
Drilling and other field work funded by Ormat is continuing at Crump Geyser, Oregon by Crump Geothermal Company, LLC a joint venture holding company owned 50:50 by NGP and Ormat including a Department of Energy (DOE) funded well (35-34) which commenced on September 19, 2011.
NGP has successfully transferred ~ US $1.6 million in DOE funding from the North Valley Project to the Pumpernickel Project for a soil-gas survey and slim-well drilling program. The funding (which was awarded under the American Reinvestment and Recovery Act Geothermal Technologies Program in October 2009), combined with equal funding from NGP, is sufficient to conduct confirmation drilling to demonstrate the viability of geothermal resources at the project. The first phase of work prior to drilling involves environmental studies to fulfill the National Environmental Policy Act requirements which are funded 80 percent by the DOE.
At the New Truckhaven Project in Imperial Valley, NGP is designing a program and commencing permitting work for resource development drilling in 2012.
A thermal gradient hole was drilled to 1460 ft at the North Valley Project near Fernley, North Nevada. Results are pending.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 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 eight properties: Blue Mountain, Pumpernickel Valley, Edna Mountain and North Valley in Nevada, New Truckhaven, East Brawley and South Brawley, in California and Crump Geyser, in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of between 200 MW and 450 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: pmitchell@nevadageothermal.com
10 bagger
13 years ago
Fri Sep 16, 2011
REPORTS MINOR INCIDENT AT BLUE MOUNTAIN PROJECT
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Vancouver, B.C. (September 16, 2011), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) announced today that a small fire involving an auxiliary pump at Unit 1 of the Blue Mountain Faulkner 1 Power Plant relating to a seal failure occurred early this morning. There were no injuries and the fire was contained using the onsite fire suppression system by means of established procedures. Damage was contained to the auxiliary pump and the plant has been placed back in service. Local Emergency Services also attended the site.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 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 eight properties: Blue Mountain, Pumpernickel Valley, Edna Mountain and North Valley in Nevada, New Truckhaven, East Brawley and South Brawley, in California and Crump Geyser, in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of between 200 MW and 450 MW from its current leaseholds.
10 bagger
13 years ago
Wed Sep 7, 2011
COMPLETES INDEPENDENT RESOURCE REVIEW OF BLUE MOUNTAIN PROJECT
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Vancouver, B.C. (September 7, 2011), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) announced today that it has completed a comprehensive independent review of all resource information for the Blue Mountain project in order to gain a better understanding of the geothermal fluid flow system and ultimately to increase production from the Faulkner 1 geothermal power plant.
The study concludes that:
1. Deep western injection wells 55-15, 57-15, 58-15 and 61-22 inject cooled geothermal fluid from the power plant into the hottest known part of the geothermal field. Geochemistry of reservoir fluids predict that still hotter thermal water is present in this portion of the geothermal system. Current injection of cooled water under pressure may be impeding hotter water from deeper in the fault structure from flowing up and eastward to the section 14 production wells.
2. Shifting current injection from wells 55-15, 57-15, 58-15 and 61-22 to new well field areas along fault structures to the north and northeast would mitigate current well communication issues and allow for potential increased production from the power plant. Shifting injection may be achieved through stimulation of existing wells and by drilling new wells on identified structures.
3. Geothermal reservoir host rocks are extensively altered and faulted. New injection targets are indentified on structures trending north and northeast.
4. New production targets are identified on the deep structures to the west.
5. The study makes recommendations for increasing injectivity at existing shut-in wells to help stabilize the production temperatures and further drilling to potentially increase production from current levels.
The study was conducted under contract by Engeocon LLC. Stuart Johnson, principal of Engeocon, subsequently has joined NGP's permanent staff to help implement the Blue Mountain and other NGP resource development programs. Mr. Johnson is a recognized authority on geothermal resource development, having successfully reversed start up reservoir production declines by redistributing injection fluids at the Dixie Valley and Stillwater geothermal fields in Nevada. He directed field development work at Steamboat Hills, Nevada that enabled expansion of production capacity from approximately 35 MW when the property was acquired by Ormat to approximately 90 MW today.
10 bagger
13 years ago
Wed Jul 27, 2011
STRENGTHENS DEVELOPMENT TEAM AND UPDATES PROJECT STATUS
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VANCOUVER, B.C. (July 27, 2011) -- Nevada Geothermal Power Inc. (NGP) (TSX-V: NGP, OTC-BB: NGLPF) is pleased to announce that Stuart D. Johnson has been appointed Vice President, Resource Development effective August 1, 2011. Mr. Johnson joins Kim Niggemann, who becomes Vice President, Resource Operations and External Affairs and Max Walenciak, Senior Vice President, Project Development and Plant Operations with overall responsibility for projects in the U.S. In addition, Paul Wilson, formerly CEO of Iceland America Energy, has joined NGP as Manager, Imperial Valley Area.
Stuart Johnson is a nationally recognized expert in the design and application of exploration, geothermal reservoir development and production methods for geothermal power production. Mr. Johnson has managed successful reservoir development programs for projects within the Western United States. He played important roles in the development of commercially-producing fields in Imperial Valley, California (Heber and East Mesa), Nevada (Steamboat Hills, Jersey Valley, Brady, Desert Peak, Dixie Valley, Soda Lake, Stillwater, and Beowawe), Hawaii (Puna) and Utah (Roosevelt Hot Springs). Mr. Johnson holds an M.S. in Economic Geology from the University of Wisconsin, Madison and a B.A. in Geology from Western Michigan University.
Paul Wilson has extensive financial and operational experience in the geothermal and construction industries having served as CEO, CFO and Executive Vice President - Operations at regional and national firms headquartered in Southern California. Mr. Wilson brings experience in strategic and operational planning, project management, systems design and implementation, mergers and acquisitions, and financial control. Mr. Wilson has a Bachelors degree in Business Management from Southwestern Adventist University and a Professional Certification in Total Quality Management from the University of California at Los Angeles (UCLA).
Project Updates
Confirmation drilling has commenced at NGP's 100% owned North Valley Project near Fernley in Northern Nevada. The 3000 foot (915 meter) deep well is centrally located within a large, ten-square-mile, high-grade heat anomaly with temperature gradients between 10-25°F/100ft (200-450°C/km). A large, intense conductance anomaly, broadly coincident with the high temperature gradient zone, is interpreted to reflect a cap of clay alteration associated with a blind geothermal system at depth. This is the first NGP drill hole at North Valley. The well is designed to obtain key subsurface geological information, detailed temperature data, a water sample at depth and to improve our understanding of the geothermal system.
Link to North Valley Video: http://www.nevadageothermal.com/s/MediaVideo.asp
Drilling and other field work is continuing at Crump Geyser, Oregon by Crump Geothermal Company, LLC, a joint venture holding company owned 50:50 by NGP and Ormat.
Field assessment and permitting work has commenced for the New Truckhaven and East Brawley Projects in Imperial Valley with a view of starting resource development drilling in 2012. NGP will open a local project office in the near future.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 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 eight properties: Blue Mountain, Pumpernickel Valley, Edna Mountain and North Valley in Nevada, New Truckhaven, East Brawley and South Brawley, in California and Crump Geyser, in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of between 200 MW and 450 MW from its current leaseholds.
10 bagger
13 years ago
Thu Jul 14, 2011
Awarded US$7.9 Million Federal Grant for Additional Work Completed at Blue Mountain
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VANCOUVER, B.C. (July 14, 2011) -- Nevada Geothermal Power Inc. (NGP) (TSX-V: NGP, OTC-BB: NGLPF) is pleased to announce that the United States Department of the Treasury has informed NGP that the Company's application in the amount of approximately US$7.9 million for Specified Energy Property in Lieu of Tax/Credits relating to additional drilling completed at Blue Mountain 'Faulkner 1' geothermal power plant subsequent to being placed in service has been approved under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009. Payment of the full amount is expected imminently.
Faulkner 1 was placed in service on October 9, 2009 and NGP has since completed new well field work that was not included in the original application. The Company intends to use the funds to repay a portion of the debt owing to lenders.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 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 eight properties: Blue Mountain, Pumpernickel Valley, Edna Mountain and North Valley in Nevada, New Truckhaven, East Brawley and South Brawley, in California 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.
10 bagger
13 years ago
Wed Jun 8, 2011
ACQUIRES ICELAND AMERICA ENERGY, INC. PROJECT ASSETS IN IMPERIAL VALLEY, CALIFORNIA
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Vancouver, B.C. (June 8, 2011), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) and Iceland America Energy, Inc. (IAE) are pleased to announce that they have closed an agreement (News Release dated February 23, 2011) whereby NGP has purchased a 100 percent ownership of IAE's geothermal assets comprised of the New Truckhaven, East Brawley and South Brawley Projects in the Imperial Valley, Southern California for a payment of US$680,000 in cash (US$564,000 paid) and 6,074,069 shares (to be issued). Reykjavik Energy Invest hf (REI), a subsidiary of Reykjavik Energy (RE-Orkuveita Reykjavikur, Iceland), is the majority owner of IAE with an 83.7% interest and will become a significant shareholder of NGP.
The acquisition of these strong project assets in California is in keeping with NGP's business plan of focusing on U.S. geothermal power development, expanding geographically into higher temperature resource areas and diversifying off-take agreements. The alignment of interest with REI as a shareholder, and RE-Orkuveita Reykjavikur, an experienced geothermal developer and power plant operator, provides opportunities for cooperation in the future for mutual benefit.
The Imperial Valley is one of the world's premier geothermal areas with highly productive, high temperature geothermal resources occurring over a large area in an active structural belt. Existing power plants at four sites have an aggregate capacity of approximately 560 MW, however the development potential of the Valley is considered to be much greater. California has the most aggressive Renewable Portfolio Standard of any US State and requires significantly more clean power to be developed in the next six years. The Company's newly acquired projects are well located to supply the large southern California market with needed clean, renewable, base-load geothermal power.
New Truckhaven
NGP holds 6267 acres (approximately 10 square miles) of Federal and private geothermal leases in the Truckhaven area. The Company believes that a possible resource of 60 MW (gross) can be ascribed to the newly acquired leases.
NGP will employ its experienced resource and development team, augmented by expertise available from Reykjavik Energy Invest hf and RE-Orkuveita Reykjavikur, to develop plans for the development of a 30-50 MW geothermal power plant. Work will commence immediately on confirmation/development drilling permits, water requirements, transmission line access, and power purchase agreements as part of an overall feasibility study.
At New Truckhaven, a high-temperature geothermal resource is confirmed in a test well drilled to 8000 feet by Philips Petroleum in 1982. Phillips targeted deep production from fractured zones in granitic basement rocks in the lowermost part of the well (below 6300 feet). NGP plans to re-complete the well as a potential producer by sidetracking a new leg through locally permeable sedimentary units intersected between 3900-6300 feet with stabilized measured well temperatures of approximately 375°F (190°C). Production wells with brine temperatures similar to temperatures measured in the Phillips well have the potential to produce up to 9 MW (gross).
A recent well by Iceland America penetrated sedimentary units to 6400 feet and granite basement from 6400 feet to total well depth of 7140 feet. Target sandy sedimentary units were intersected between 1900-3300 feet and 5150-6400 feet. The maximum well temperature, recorded at the bottom of the well, was 350°F (177°C). It is considered that the IAE well is on the margin of the reservoir and would be suitable as an injection well.
The New Truckhaven reservoir fluid sampled by Philips and Iceland America during flow tests indicated benign fluid chemistry with relatively low Total Dissolved Solid content (TDS = 3900 ppm) requiring no extraordinary treatment for plant operations. The geochemistry of geothermal fluid from the Phillips well tests predicts source temperatures of 380-396°F (193-202°C) in good agreement with measured temperatures.
East Brawley
At East Brawley, leases controlled by NGP total 6752 acres (approximately 10.5 square miles). Development potential is indicated by several abandoned deep wells located within the East Brawley thermal anomaly, including wells on leases controlled by NGP, reporting high-salinity brine with temperatures between 500-580°F (260-304°C) at depths below 11,000 feet. Ram Power's recent Orita project drilling is immediately north of NGP's leases.
In 2011, NGP will commence work for well permits and complete geothermal reservoir and power plant scoping studies.
South Brawley
NGP has acquired a 50% leasehold on 1920 gross acres (three square miles) in the South Brawley Geothermal Area. NGP is evaluating next steps and further leasing opportunities.
Brian Fairbank, President and CEO of Nevada Geothermal Power commented, "I would like to thank Iceland America and Reykjavik Energy Invest for persevering in order to get this deal done. I believe that NGP and our Iceland-based partners will benefit immensely from the synergies created by the agreement. We are excited to move these projects forward, building renewed value for shareholders."
MDB Capital Group, LLC acted as independent advisor to IAE in the transaction.
Blue Mountain Update
NGP continues to work with its resource consultant, GeothermEx Inc., and its lenders to develop an up-to-date outlook for power production at its Blue Mountain project. It is possible that power production will be less than the previously disclosed outlook of 35 MW and declining at 2.5% per year. In the event that the new model requires a significant reduction of production output, the Company's ability to service debt and comply with the power purchase agreement may be compromised.
About Reykjavik Energy Invest hf:
Reykjavik Energy (RE-Orkuveita Reykjavikur) is a world leading authority in the utilization of geothermal energy. Reykjavik Energy Invest hf (REI) is Reykjavik Energy's international business development arm. RE operates two CHP geothermal power plants in Iceland, Nesjavellir and Hellisheidi. Their combined current output is 333 MW of electricity and 430 MW of thermal energy for space heating. The Nesjavellir power plant has been in operation since 1990 with 120 MW of electricity installed in 1996. In 2006 the first 90 MW were installed in Hellisheidi, 33 MW in 2007, 90 MW in 2008, 133 MW of thermal energy were added late 2010 and further 90 MW are planned to be installed in the fall of 2011 increasing the total output of geothermal electricity from the Hellisheidi plant to 303 MW. Iceland America Energy, Inc. was formed in 2004 to acquire and develop geothermal resources in North America.
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, 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.
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: pmitchell@nevadageothermal.com
10 bagger
13 years ago
NGLPF.. $0.1225..
Nevada Geothermal Power Reports Results for the Year ended June 30, 2011 and Project Status Report
PR Newswire - Sep 27 20:30 EDT
VANCOUVER, Sept. 27, 2011 /PRNewswire/ - Nevada Geothermal Power Inc. (NGP) (TSXV: NGP) (OTCBB: NGLPF) today announced results for the year ended June 30, 2011. Gross margin for the year was $12.6 million and the net loss was $8.6 million. The full financial results are available at www.sedar.com and on the Company's website at http://www.nevadageothermal.com.
(millions of US $ unless stated otherwise) Year ended June 30,
2011 2010 Change
Revenue 24.9 11.8 111%
Gross margin 12.6 4.2 200%
Operating expenses (5.7) (4.9) 16%
EBITDA * 15.2 3.1 390%
Operating profit (loss) 6.9 (0.7) (1086%)
Net loss (8.6) (17.2) (50%)
Net loss per share (basic and diluted) ($) (0.08) (0.19) (58%)
Gross margin % excluding depreciation & amortization 79% 77% 3%
Total assets 193.1 187.3 3%
Short & Long term liabilities 163.2 161.5 1%
The year ended June 30, 2011 was the first full year that the Company's Blue Mountain geothermal power plant was in operation. Power production for the year averaged 45 MW (gross), 35 MW (net), generating revenue of $24.9 million and EBITDA of $15.2 million.
The Company's President and CEO, Mr. Brian Fairbank, commented on the results, saying that, "The Blue Mountain power plant continues to deliver solid operational results, despite current difficulties with the funding structure which resulted in the net loss recorded. We continue to believe that the wellfield is capable of higher power production, and are working towards making this a reality."
Highlights
Three properties in California's Imperial Valley purchased from Iceland America Energy
$98.5 million 4.14% financing with John Hancock, partially guaranteed by US DOE
$7.9 million grant received under the American Recovery and Reinvestment Act of 2009 ("ARRA") subsequent to year-end
Crump Joint Venture with Ormat
Discussions with EIG regarding potential changes to loan terms continue, with a view to enabling a tax-assisted financing
* Earnings before interest, tax, depreciation and amortization ("EBITDA"), a non-GAAP measure, is calculated as follows:
2011 2010
Net loss (8.6) (17.2)
Depreciation 7.1 5.0
Interest expense 16.8 15.4
Interest income (0.1) (0.1)
EBITDA 15.2 3.1
Mr. Fairbank said, "We are continuing to develop our pipeline of geothermal properties, as well as strengthening our management team, in order to be well placed to take advantage of the opportunities that exist in the geothermal energy sector."
Project Status Report
Wellfield optimization is ongoing at Blue Mountain. Long range outlook model outputs have been recently completed in support of banking requirements.
Drilling and other field work funded by Ormat is continuing at Crump Geyser, Oregon by Crump Geothermal Company, LLC a joint venture holding company owned 50:50 by NGP and Ormat including a Department of Energy (DOE) funded well (35-34) which commenced on September 19, 2011.
NGP has successfully transferred ~ US $1.6 million in DOE funding from the North Valley Project to the Pumpernickel Project for a soil-gas survey and slim-well drilling program. The funding (which was awarded under the American Reinvestment and Recovery Act Geothermal Technologies Program in October 2009), combined with equal funding from NGP, is sufficient to conduct confirmation drilling to demonstrate the viability of geothermal resources at the project. The first phase of work prior to drilling involves environmental studies to fulfill the National Environmental Policy Act requirements which are funded 80 percent by the DOE.
At the New Truckhaven Project in Imperial Valley, NGP is designing a program and commencing permitting work for resource development drilling in 2012.
A thermal gradient hole was drilled to 1460 ft at the North Valley Project near Fernley, North Nevada. Results are pending.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 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 eight properties: Blue Mountain, Pumpernickel Valley, Edna Mountain and North Valley in Nevada, New Truckhaven, East Brawley and South Brawley, in California and Crump Geyser, in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of between 200 MW and 450 MW from its current leaseholds.
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.
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: pmitchell@nevadageothermal.com
SOURCE Nevada Geothermal Power Inc.
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