Raser Technologies reports on its activities in Q3 results
Raser Technologies reports its Q3 results for 2010 and the progress on separating the renewable energy and automotive segments of the company, development of Lightning Dock project and sale of Thermo No.1.
In its recently announced third quarter results for the nine-month period ended September 30th, Raser Technologies provided an overview on its corporate development and financial results.
The company “successfully re-entered a well (TFD-55-7) at the Lightning Dock project located in the Animas basin in southwestern New Mexico. The well produced water temperatures above 300 degrees Fahrenheit. Ultimately, Raser believes the Lightning Dock project will be a 15 megawatt power plant.”
Raser “obtained preliminary financing with Evergreen-FE Lightning Dock, LLC (Evergreen-FE) for the development of the Lightning Dock, New Mexico geothermal project (LDG). The agreement contemplates that Evergreen-FE will invest $15.3 million in exchange for a 51% interest in the project and that Raser will develop and manage the project, subject to the negotiation and execution of definitive agreements satisfactory to the parties.
The agreement provides for an initial investment in the form of loans of up to approximately $2 million to LDG to fund certain resource development of the project. Upon execution of definitive documents governing Evergreen-FE’s equity investment in LDG, the loan balance will be credited toward the purchase price payable by Evergreen-FE for its interest in LDG.
Lightning Dock Geothermal HI-01, LLC signed term sheet with Ormat Nevada, Inc., a subsidiary of Ormat Technologies, Inc., to provide the engineering, procurement and construction of the Lightning Dock project. The broad scope of work includes the installation of two large Ormat binary turbo generators and all associated above-ground plant equipment including, but not limited to, well field pumps, pipelines, cooling towers, electric interconnection equipment and transmission equipment.
Entered into an agreement to repay a substantial portion of the debt held by the senior secured lender, Prudential, of Thermo No. 1. Under the arrangement, the lender received an immediate payment of $27 million out of project escrow accounts and waived compliance with certain debt-related covenants and obligations until February 1, 2011. In addition, Raser is required to make an additional payment of up to $6.25 million by February 1, 2011.
Re-paid $2.5 million of Raser’s $5.3 million line of credit balance pursuant to the issuance of stock and warrants of Raser. Made significant progress in the marketing of the Thermo No. 1 plant. We expect to close this transaction in the first quarter of 2011.
“We are very pleased with the progress we made in the third quarter,” said Raser Chief Executive Officer Nick Goodman. “We are moving forward in several key areas including: the separation of the renewable energy and automotive segments of the Company, the development of our Lightning Dock project and the sale of Thermo No. 1.”
Source: company release via Marketwatch/ BusinessWire