Alterra Power reports update on activities for drilling activities at the Reykjanes field in Iceland, the ongoing discussions with EDC on Chilean projects and the continuation of discussions on a transaction on its HS Orka shares in Iceland.
Following news last week, that a likely sale of its Icelandic assets might be off, Canadian Alterra Power has released a corporate update on its activities.
On its Iceleandic activities the company reports that “the first well in a two-well drilling program has been completed at the Reykjanes field. Initial indications for the completed production well are positive, and further details will follow. Drilling for the second well will commence shortly. The expected cost for the two-well program is $9 million, which will be paid from cash reserves at HS Orka. The new capacity expected to result from the drilling will be used for the planned 80 MW expansion and as reserve capacity for the existing 100 MW plant.
On a possible transaction of its HS Orka shares, Alterra says that it “continues to discuss the sale of HS Orka with prospective purchasers. Discussions have been complicated by foreign exchange matters and required approvals from the Central Bank of Iceland.”
Alterra Power and Philippine based Energy Development Corporation (EDC) are actively documenting the next-phase agreement toward full partnership, while EDC continues to conduct its due diligence in parallel. Management expects any final arrangements to be completed within the first half of 2013.”
Source: Company release via Stockhouse
Possible HS Orka Transaction: