(All production figures are approximate)
Vancouver, B.C., Canada, January 6, 2010 -- Magma Energy Corp. (TSX:MXY) reports the successful flow test of Soda Lake production well 45A-33 which will provide 3 MW of net power. The well was drilled in June 2009 and, following a field optimization program, the flow test was completed in December. The recent test demonstrated the well to be capable of 1,200 gallons per minute of sustained flow at 385°F. The well is in the process of being connected to the Soda Lake facility which was successfully refurbished in September and October, 2009 in preparation for additional production from the well field. The refurbishment program contributed an additional 1 MW of net output.
Andrea Zaradic, Magma's Vice President Corporate Development commented, "We are extremely pleased with this result from our field optimization program which incorporated an established oil and gas stimulation technique known as deflagration. To the best of our knowledge, this well stimulation technology has never been used before in the geothermal industry. We have now confirmed half of our planned Phase 1 program to increase Soda Lake's gross power capacity from 11 MW to 23 MW and we expect to confirm the remaining capacity by the end of March, 2010."
Please visit the link, http://www.magmaenergycorp.com/SodaLake., to view our photo and video gallery of the flow test.
About Magma Energy Corp.
Magma Energy Corp. is a geothermal power company which operates, develops, explores and acquires geothermal energy projects. We have an extensive portfolio of properties throughout the western United States, Iceland and Latin America, including one operating power plant in Nevada and an interest in two other operating power plants in Iceland.
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 our growth, results of operations, revenues, requirements for capital, future demand for and prices of electricity, business prospects and opportunities, exploration and development, geothermal resources, 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.
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