Nevada geothermal to purchase Iceland America Energy’s geothermal assets

Nevada Geothermal Power Inc. and Iceland America Energy, Inc. (IAE) have announced that they have signed an agreement giving NGP the exclusive right to purchase a 100% ownership of IAE’s geothermal assets comprised of the New Truckhaven, East Brawley and South Brawley Projects in the Imperial Valley, Southern California, for US$ 4,150,000.

NGP will pay US$ 100,000 in cash and the balance in NGP shares having a deemed value of C$ 0.65. Reykjavik Energy Invest hf, a subsidiary of the City of Reykjavik’s geothermal utility Orkuveita Reykjavikur (Iceland), is the majority owner of IAE with an 83.7% interest and will thus become a significant shareholder of NGP. The deal is expected to close by March 31, 2011.

“We are very pleased with the transaction and the prospects it has for geothermal utilisation in California. We are looking forward to providing NGP with access to Reykjavik Energy’s experience and expertise in developing and operating geothermal installations,” said Helgi Thor Ingason, CEO of Reykjavik Energy and REI COB.

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 operated by Cal Energy and Ormat Inc. have an aggregate capacity of approximately 560 MW. Among other current projects in the region, Energy Source is constructing the Hudson Ranch 49.9 MW geothermal power facility and Ram Power is drilling production test wells at their 50 MW Orita geothermal power project.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/24022011/nevada_geothermal_to_purchase_iceland_america_energy%E2%80%99s_geothermal_assets/