Ram Power acquires additional acreage at the Geysers
Ram Power acquires remaining 50% of geothermal acreage (Filley Property) with identified steam resource for the Geysers project of the company, formerly developed by Western GeoPower, now fully-owned by Ram Power.
Reno, Nevada based Ram Power, Corp. (TSX: RPG) in a release today, “announced that it has acquired, through its wholly-owned subsidiary Skyline Geothermal, LLC, an undivided 50% interest in the geothermal rights to 215 acres of land (the “Filley Property”) associated with the identified steam resource for Ram Power’s Geysers Geothermal Project (the “Project”) in Northern California. The Filley Property provided a portion of the steam to a 55 megawatt power plant operated by Pacific Gas and Electric until 1989. The remaining undivided 50% interest in the geothermal rights in the Filley Property is being leased by another Ram Power wholly-owned subsidiary, Western GeoPower, Inc. (“Western”), under a long-term lease which has been amended to eliminate certain performance conditions by Western to maintain the lease. Under the amended lease Western has agreed to the payment of an annual minimum guaranteed royalty.
The Filley Property has one fully tested production well which can support approximately 20% of the 25-35 megawatt Project and has several existing well pads that could provide access into undeveloped areas of the steam field. The Filley Property is adjacent to the Mayacamas property which consists of 421 acres of land owned by another wholly-owned subsidiary of Ram Power. The Mayacamas property has three fully tested production wells which can support over 80% of the Project. Ram Power is actively pursuing project financing for the Project and is in discussions with an engineering, procurement, and construction contractor for the development of the Project. It is expected that financing will close by the second quarter of 2011 with construction and further development of the steam field to follow. The Company expects the Project to be completed by 2013.
As a result of the transaction, Ram Power will no longer have to pay royalties for use of the resource associated with the 50% undivided interest in the geothermal rights in the Filley Property which it now owns.
Hezy Ram, CEO of Ram Power, stated, “The Filley Property transaction is another Geyser’s Project milestone which will allow us to proceed with the development of this asset which has great value to our shareholders and confirms our desire to maximize the full potential of our Geothermal resources.”
Source: Company release via Marketwire