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 /PRNewswire/ – 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
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
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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Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng.
President & CEO
SOURCE Nevada Geothermal Power Inc.