The Mayacamas property has three fully tested production wells, which can support over half of the 25MW-35MW project originally engineered by Western GeoPower, a wholly-owned subsidiary of Ram Power, and is adjacent to Ram Power’s 3,500 contiguous leased acres with several existing well pads that can provide access into undeveloped areas of the steam field.
Together, these parcels of land will provide maximum flexibility to investigate various alternatives for advancing the project. The objective of these alternatives is to further enhance the proven steam resource and thus the value of the project, Ram Power said.
Such alternatives being considered include an expanded drilling program on the site, the sale of steam to power producers and the development of Ram Power’s own operating facility.
As a result of the transaction, Ram Power will no longer be required to pay a royalty of 4% to 12% from the revenues associated with the selling of power that utilizes the steam from the resource, the company said.
Hezy Ram, CEO of Ram Power, said: “Ownership of the land rights is a key element for Ram Power, allowing for flexibility and autonomy in the development of the project. The purchase of the land and resource rights for the project is a continuation of our commitment to developing our pipeline of projects to their full potential.”
Ram Power is a Nevada-based renewable energy company and engaged in the business of acquiring, exploring, developing and operating geothermal properties.
