Under the terms of the agreement, Ormat has acquired AER’s Crump Geyser (50% interest) and North Valley geothermal project assets.

Ormat also has the option, exercisable for four years, to buy an additional certain of AER’s New Truckhaven geothermal leases for $1.5m.

A total of $1.49m was paid by Ormat on closing of the transaction. As per the agreement, a further $10,000 is payable if the lease purchase option is exercised.

The transaction benefits AER with removal of liability for geothermal well abandonment costs of approximately $450,000, and elimination on-going geothermal lease payment obligations.