Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a
renewable energy company focused on the development, production and
sale of electricity from geothermal energy, is pleased to provide
the following update on the progress at the Company's 72 MW
expansion of the San Jacinto-Tizate geothermal power project (the
"Project").
Power Sales Tariff Increase has been Registered
and is Effective
As recently disclosed, the Company received approval from the
Nicaraguan Government for a power sales tariff increase under its
power purchase agreement for the Project. The tariff increase has
been registered by the Nicaraguan Energy Institute and the
Nicaraguan electricity grid operator, Centro Nacional de Despacho
de Cargo, and is in effect for power sold from the Project on or
after October 1, 2012.
Phase II Expansion Update
The Phase II, 36 MW net expansion continues to be constructed on
time and on budget, with construction activities 95% complete,
power plant critical component engineering 100% complete and plant
engineering 99% complete. The Phase II main transformer was
successfully energized and plant pre-commissioning activities are
ongoing. The unit is expected to be in commercial operation in
December 2012.
Update on San Jacinto Steamfield and Initial
Electricity Production
The Company and its resource consultant, Sinclair Knight Merz
("SKM"), continue to investigate ways to further expand the
resource of the Project in order to maximize the overall project
returns. As a result, the Company and SKM have developed short-term
and medium-term resource production enhancement plans to increase
the steam capacity for the Project.
The Company and SKM are currently estimating that initial total
steam availability for the Project will be in the 500-530
tonnes/hour range. This estimate is based on current production
trends for Phase I of the Project and field monitoring results
indicating the stabilization of the reservoir pressure following
the substantial increase of production associated with the
commercial operation of Phase I. A recent report from the Phase II
lenders resource consultant, GeothermEx Inc., is consistent with
this estimate. At this initial steam availability level initial
electricity production is estimated to be 60-64MW net for the
Project once Phase II is in commercial operation.
The Company is currently executing its short-term production
enhancement plan with expected completion by the end of the year.
The 2012 Plan (the "2012 Plan") includes, among other things, the
conversion of well SJ 6-1 from an injection well to a production
well and use of well SJ 12-1 as an injection well. The successful
completion of the 2012 Plan is estimated to increase steam
availability by 30-40 tonnes/hour, raising the total steam
availability to 530-570 tonnes/hour, which would increase estimated
initial electricity production approximately 4-5 MW net for the
Project once Phase II is in commercial operation.
The Company plans to reassess the production capacity of the San
Jacinto steamfield in the first several months after Phase II is
placed in commercial operation. During this period, additional
geo-scientific and reservoir data collection and analysis will
permit the Company to make decisions regarding further production
enhancement activities in order to optimize long term reservoir
management and utilization. The Company and SKM have tentatively
determined, under the medium-term production enhancement plan that
deepening, forking and perforating the casing of well SJ 9-3 is the
highest priority option for production enhancement based on
technical, cost and operational factors. These activities are
estimated to increase the steam availability at San Jacinto by
approximately 70-110 tonnes/hour, enabling the Project to run at
its full 72MW net capacity, and to be funded primarily from the
Project's major maintenance reserves established under the Phase I
and II Credit Facilities.
Shuman Moore, Ram Power's President and CEO, stated, "I am proud
of the Ram and PENSA teams for their continued success in
completing critical milestones for our Company, especially over the
last several months. The tariff increase provides a critical level
of margin allowing the Company to focus on the completion of the
Phase II expansion at San Jacinto, and diligently execute its
steamfield improvement plans while meeting all its loan
covenants."
About Ram Power, Corp.
Ram Power is a renewable energy company based in Reno, Nevada,
engaged in the business of acquiring, exploring, developing, and
operating geothermal properties, and has interests in geothermal
projects in the United States, Canada, and Latin America.
Cautionary Statement
This news release contains certain "forward-looking information"
which may include, but is not limited to, statements with respect
to future events or future performance, management's expectations
regarding the Company's growth, results of operations, estimated
future revenues, requirements for additional capital, revenue and
production costs, future demand for and prices of electricity,
business prospects and opportunities. In addition, statements
relating to estimates of recoverable geothermal energy "reserves"
or "resources" or energy generation are forward-looking
information, as they involve implied assessment, based on certain
estimates and assumptions, that the geothermal resources and
reserves described can be profitably produced in the future. Such
forward-looking information reflects management's current beliefs
and is based on information currently available to management.
Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "predicts",
"intends", "targets", "aims", "anticipates" or "believes" or
variations (including negative variations) of such words and
phrases or may be identified by statements to the effect that
certain actions "may", "could", "should", "would", "might" or
"will" be taken, occur or be achieved. A number of known and
unknown risks, uncertainties and other factors may cause the actual
results or performance to materially differ from any future results
or performance expressed or implied by the forward-looking
information. Such factors include, among others, general business,
economic, competitive, political and social uncertainties; the
actual results of current geothermal energy production, development
and/or exploration activities and the accuracy of probability
simulations prepared to predict prospective geothermal resources;
changes in project parameters as plans continue to be refined;
possible variations of production rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labor
disputes and other risks of the geothermal industry; political
instability or insurrection or war; labor force availability and
turnover; delays in obtaining governmental approvals or in the
completion of development or construction activities or in the
commencement of operations; as well as those factors discussed in
the section entitled "Risk Factors" in the Company's Annual
Information Form. These factors should be considered carefully and
readers of this news release should not place undue reliance on
forward-looking information.
Although the forward-looking information contained in this news
release is based upon what management believes to be reasonable
assumptions, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Such forward-looking information is
made as of the date of this news release. Other than as required by
applicable securities laws, Ram Power assumes no obligation to
update or revise the information contained in this news release to
reflect new events or circumstances.
Steven Scott Director of Investor Relations Ram Power, Corp.
Phone: 775-398-3711 Email: Email Contact www.ram-power.com