VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 19, 2009) - Magma Energy Corp. (TSX:MXY) has completed two drill holes at its Soda Lake geothermal operation in Nevada to depths of 4,468 feet and 8,995 feet respectively. The wells were drilled to provide further information regarding the distribution of heat and permeability of the reservoir as part of the Company's plans to double Soda Lake's gross generating capacity from 11 megawatts to 23 megawatts. Maximum temperatures in the wells were 395 degrees F and 405 degrees F respectively, making the holes the hottest ever recorded within the Soda Lake geothermal field, however initial indications of fluid permeability appear more limited than expected. The Company is utilizing data from all wells drilled to date at Soda Lake to determine whether the new wells will be sufficient for planned expansion. This work will include an optimization review of the current production and reinjection strategy.
In addition to drilling activities, Magma has completed a detailed engineering assessment of power plant upgrades and refurbishments that are required in anticipation of the new production wells. Construction awards have been issued for improvements to the existing cooling tower, well-field piping and electrical system upgrades as well as the refurbishment of existing power generating equipment. All plant refurbishment activities are on track for completion by the end of 2009.
About Magma Energy Corp.
Magma is a geothermal power company which is actively engaged in operating, developing, exploring and acquiring geothermal energy projects. We currently have one operating power generation plant (the Soda Lake Operation in Nevada), and an extensive portfolio of exploration properties throughout the western United States, Chile, Argentina and Peru.
Cautionary Note Regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding exploration and development, upgrade and refurbishment activities at Magma's Soda Lake property (including expectations as to the completion date for these activities) and estimates of geothermal reservoir size and temperature, geothermal resources, recoverable geothermal energy or energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.
A number of known and unknown risks, uncertainties and other factors, may cause our actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. The forward-looking information is based upon what management believes to be reasonable assumptions, including, but not limited to, assumptions about: the success and timely completion of planned exploration and expansion programs, the growth rate in net electricity consumption; support and demand for non-hydroelectric renewables; government initiatives to support the development of renewable energy generation; the accuracy of reserve estimation methodology and analysis used to estimate the quantity of potentially recoverable thermal energy; geological, geophysical, geochemical and other conditions at our properties; the reliability of technical data, including extrapolated temperature gradient, geophysical and geochemical surveys and geothermometer calculations; capital expenditure estimates; availability of capital to fund exploration, development and expansion programs; and general economic conditions. Forward-looking information and statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur.
There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.
FOR FURTHER INFORMATION PLEASE CONTACT:
Magma Energy Corp.
Vice President, Corporate Development