Thu Aug 23, 2012
Crump Geyser Project: Nevada Geothermal Power and Ormat Agree
to Extend Ormat Development Spending Commitments and
Accelerated Cash Payments to NGP
Vancouver, B.C. (August 23, 2012), Nevada Geothermal Power Inc.
(NGP) (TSX.V: 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
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 evaluation.
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
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
, and North
in Nevada, New
in California, and a 50% interest in Crump Geyser
in Oregon. These properties are at different levels of
exploration and development.
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng.
President & CEO
Nevada Geothermal Power Inc.
Telephone: 604-688-1553 x123
Toll Free: 866-688-0808 x123
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