Vancouver, B.C., Canada, October 30, 2009 -- Magma Energy Corp. (TSX: MXY) is pleased to announce that its US subsidiary, Magma Energy (US) Corp. ("Magma"), has been awarded $10 million in American Recovery and Reinvestment Act funding for two of its Nevada geothermal exploration properties, Soda Lake and McCoy. The grants will reimburse 50 -- 80% of Magma's planned innovative exploration expenditures on those properties over the next 24 months. At Soda Lake, Magma will apply new oil and gas technology to discover geothermal resources, and at McCoy, Magma will validate a combination of innovative exploration technologies in its search for a large geothermal reservoir on the property. The funding is part of $98.1 million allocated by the US Department of Energy under the Recovery Act for innovative geothermal exploration and drilling projects.
Dr. Frank Monastero, Magma's President, said, "We are very pleased with this financial support through the Recovery Act for our aggressive program to explore and develop our Soda Lake and McCoy properties, in conjunction with exploration on our other 14 US geothermal exploration projects. This funding will allow us to test and develop some very creative exploration and drilling techniques that may have application to exploration on all our properties in due course. We will immediately implement these programs and I look forward to reporting on successful results as soon as possible."
About Magma Energy Corp.
Magma Energy Corp. 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.
For further information please contact:
Alison Thompson, Vice President, Corporate Relations
Magma Energy Corp.
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 reservoir temperatures, the potential of concessions, 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.