Raser Technologies, Inc. Finalizes the Purchase of Lightning Dock – 20 MW Potential of Power Generation
Raser Technologies, Inc. (NYSE Arca: RZ) today announced that it has closed into escrow the previously announced purchase of the assets of GeoLectric Power Company NM, LLC, a special purpose company, which owns the geothermal rights to the known and well-studied Lightning Dock geothermal resource in southwestern New Mexico. Independent studies indicate that this resource has the potential to produce in excess of 20 megawatts of clean, renewable electric power, enough to power approximately 20,000 homes. Closing of escrow is subject to assignment approval by the Bureau of Land Management (BLM).
The Lightning Dock resource is one of the nation’s first BLM leaseholds held for geothermal production. It has an existing direct-use production history of over 20 years at temperatures and flow rates believed to be well suited for power generation using Raser’s plant designs and the PureCycle® equipment. The resource has more than 40 existing wells that have shown that temperatures in excess of 300 degrees F with substantial flows at depths of 1,500 to 2,500 feet exist. Some of these wells may be used for production purposes, while other wells will be used for observation, flow test and gradient uses.
“The acquisition of an existing geothermal resource with the production capabilities of Lightning Dock will substantially shorten our power plant development timeline,” said Brent Cook, Raser’s CEO. “Since this project is in a more advanced stage of development than our other sites, including a partially developed well field, it carries a much higher value to us.”
Raser is acquiring the GeoLectric assets for $4.1 million, with an additional $0.5 million incentive due upon the attainment of certain development milestones.
“This transaction is an exciting event for Raser and its shareholders,” continued Mr. Cook. “The acquisition diversifies our resource base into New Mexico, a new state for Raser, and gives us entry into new power markets and other geothermal-friendly political environments. We plan to initially build a 15 megawatt modular power plant and then further develop the site to maximize the resource’s full potential. We believe the purchase of the more developed project will reduce our overall project portfolio risk and help us achieve our stated goal of initiating the development of approximately 100 megawatts of geothermal power generation capacity per year for the first three years and 150 megawatts per year thereafter. This will bring our total of initiated projects under development to 55 megawatts in the first seven months towards our goal of initiating the development of 100 megawatts this year.”
About Raser Technologies
Raser (NYSE Arca: RZ) is an environmentally focused geothermal development and technology licensing company operating in two business segments. Raser’s Transportation and Industrial Technology segment focuses on using Raser’s Symetron™ technology to improve the efficiency of electric motors and other applications. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s Symetron™ technology. Further information on Raser may be found at: www.rasertech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding: our beliefs about the potential for geothermal power generation on the property; our belief about our ability to exploit the available geothermal resources; our beliefs about the strength and enforceability of our agreements; and our beliefs about the geothermal market generally. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to adapt our technology for geothermal applications; our ability to secure necessary permits; the strength of our intellectual property; our ability to attract, train and retain key personnel; and such other risks as identified in our quarterly report on Form 10-Q for the quarter ended September 30, 2007, as filed with the Securities and Exchange Commission, and all subsequent filings.
All forward-looking statements in this press release are based on information available to us as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.