Alterra Power Corp. has provided an interim period update prior to its year-end financial reporting, expected in late March:
- Drilling at Reykjanes Geothermal Field: 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 MWe expansion and as reserve capacity for the existing 100 MWe plant.
- Chile / Peru Partnership: Alterra and 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.
- Possible HS Orka Transaction: Alterra 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.
