U.S. Geothermal completes Geysers acquisition
U.S. Geothermal completes acquisition of Geysers project from Ram Power for a total of $6.4 million in cash. The company thereby takes over subsidiaries certain subsidiaries, incl. Western GeoPower Inc.
Announced yesterday, U.S. Geothermal Inc. “has successfully completed the previously announced acquisition of Ram Power, Corp.’s (“Ram”) Geysers project for a total of $6.4 million in cash. The Ram subsidiaries included in the acquisition are Western Geopower, Inc., Skyline Geothermal Holdings, Inc., and Etoile Holdings, Inc., which in turn includes all membership interests in Mayacamas Energy LLC and Skyline Geothermal LLC.
“Acquiring this project with 5 completed production/injection wells, having enough total initial steam production for roughly 30 megawatts gross, is a huge head start. We are currently evaluating two development approaches for this project: the first involves obtaining a new PPA to replace the previously expired PPA’s and constructing a new power plant; while the second option involves selling steam to one of several companies currently operating power plants in the Geysers,” said Dennis Gilles, Chief Executive Officer of U.S. Geothermal Inc. “Having over $90 million previously invested in the project will allow us to finish development at substantially reduced costs, and with drilling risk significantly reduced given that most of the wells needed have already been completed. We are very excited to advance the Geysers project to its completion.”
Source: Company release via Wall Street Journal