Ram Power purchases property at the Geysers
Ram Power purchases Mayacamas property close to its Geysers Geothermal Project in Northern California, adding 420 acres to an adjacent holding of 3,500 acres.
Ram Power, Corp. announces “that it has purchased through its wholly owned subsidiary, Etoile Holdings Inc. (“Etoile”), 100% of the membership interests in Mayacamas Energy LLC (“Mayacamas”) which has direct ownership of the 421 acres of land associated with the identified steam resource for Ram Power’s Geysers Geothermal Project (the “Project”) in Northern California and provided the majority of the steam to a 55 megawatt power plant operated by Pacific Gas and Electric until 1989.
The Mayacamas property has three fully tested production wells which can support over half of the 25-35 megawatt project originally engineered by Western GeoPower Inc. (a wholly owned subsidiary of Ram Power) and is adjacent to Ram Power’s 3,500 contiguous leased acres with several existing well pads that could provide access into undeveloped areas of the steam field. Together, these parcels of land will provide maximum flexibility to investigate the various alternatives for advancing the Project. The objective of these alternatives is to further enhance the proven steam resource and thus the value of the Project. Such alternatives being considered include an expanded drilling program on the site, the sale of steam to power producers and the development of Ram Power’s own operating facility.
The purchase price paid by Ram Power was an undisclosed amount of cash. As a result of the transaction, Ram Power will no longer be required to pay a royalty of 4% to 12% from the revenues associated with the selling of power that utilizes the steam from the resource.
Hezy Ram, CEO of Ram Power, stated, “Ownership of the land rights is a key element for Ram Power, allowing for flexibility and autonomy in the development of the Project. The purchase of the land and resource rights for the Project is a continuation of our commitment to developing our pipeline of projects to their full potential.”
Source: Company release via Marketwire