Ormat, NGP pair on geothermal resources development in Oregon

(ADPnews) - Nov 3, 2010 - The Nevada-based unit of US geothermal company Ormat Technologies Inc (NYSE:ORA) and Canada-based Nevada Geothermal Power Inc (OTC:NGLPF), or NGP, on Monday announced they will jointly develop, construct, own and operate one or more geothermal facilities in Oregon, USA.

According to their agreement, the two partners will form a limited-liability company -- Crump Geothermal (CGC) -- and will each own 50% in the firm. Furthermore, the companies will drill at least one well for the first geothermal facility with an expected rated capacity of up to 30 MW as early as 2010 and put the whole plant into operation before the end of 2013.

NGP will contribute technical and engineering data, existing permits and the ongoing grant for exploration from the Department of Energy (DOE) in relation to the Crump Geyser area.

Ormat will finance all initial development activities of CGC, estimated at USD 15 million (EUR 11m). Besides financing, Ormat will be responsible for all development activities of CGC and for its management. The firm will also pay NGP USD 2.5 million in installments over three years.

(USD 1.0 = EUR 0.717)

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