VANCOUVER, Sept. 24, 2013 /PRNewswire/ - Alternative Earth Resources Inc. ("Alternative Earth" or "the Company") (TSX-V: AER) reports that it has completed its restructuring process and greatly reduced its overhead over the past six months.
The Company retains a superior property portfolio of four advanced projects prospective for geothermal development and electricity production in the Western United States. Alternative Earth seeks to further strengthen its cash reserves by joint venturing or selling projects.
The Company's projects are as follows:
New Truckhaven Project - Imperial Valley - California
Alternative Earth holds a dominant lease position in the North Truckhaven Geothermal Area in the Imperial Valley, California located on the west side of the Salton Sea. Imperial Valley, one of the world's premier geothermal areas, has approximately 500 MW of electrical geothermal power on-line and development potential for more than 2,000 MW of generation capacity according to the Imperial Valley Economic Development Corp.
Production and injection drilling targets have been identified and the Company is seeking a development partner for a 30 MW binary geothermal power plant. The New Truckhaven Project is readily accessible by Highway 86 and is in close proximity to transmission lines. Test data from a historic production test well feet indicates a potentially commercial resource with measured temperatures of 375°F (190°C) between 3000 and 5200 feet in layered, high-porosity, sandy sedimentary units. A recent report for Alternative Earth by Mannvit hf. (June 6, 2012) of Reykjavik, Iceland outlines a probable resource of approximately 53 MW within the upper sand unit.
Pumpernickel Geothermal Project - Humboldt County - Nevada
The Pumpernickel Project encompasses 11 square miles of contiguous geothermal leases located in north-central Nevada. An early test well to 3070 feet intersected 275°F (135°C) geothermal fluid at shallow depth in the range-front fault known as the Pumpernickel Fault. Geothermometry of hot spring and well fluids indicate hotter temperatures deeper in the geothermal system.
Three initial development test wells are permitted with site selection based on the locations of hot springs along the Pumpernickel Fault, the orientation of known and interpreted faults, as well as seismic, resistivity, magnetic and gravity survey data. Engineering studies and a Large Generator Interconnection Agreement (LGIA) with NV Energy for grid connection at the Golconda substation 12 miles north of the project are completed. A State water license for power plant cooling operations has been granted.
A market for additional geothermal and other clean energy in Nevada is being coordinated by the Nevada Public Utilities Commission to replace lost power from coal plant closures directed by the State of Nevada. Renewal power from Pumpernickel will also gain access to markets in Southern California via the One Nevada Transmission Line currently under construction and scheduled for completion in late 2013.
North Valley Project - Washoe and Churchill Counties - Nevada
Alternative Earth's leaseholds cover an unusually large and intense thermal anomaly outlined in 20 widespread temperature-gradient holes drilled in the first rush of geothermal exploration in Nevada. There are no surface hot springs or fumaroles but the thermal anomaly is interpreted to be caused by an as yet undiscovered "blind" geothermal reservoir presenting an opportunity to discover a geothermal system similar to, but potentially larger than Alternative Earth's earlier discovery of the Blue Mountain geothermal resource, now under production 90 miles to the northeast of North Valley.
Crump Geyser Geothermal Project - Lake County - Oregon (Joint venture)
Alternative Earth and Ormat Nevada Inc. ("Ormat") are equal partners in Crump Geothermal Company LLC (CGC), formed to develop of the Crump Geyser project in 2011. The project is located 48 km (30 miles) east of Lakeview, Oregon and consists 35 square miles (22,590 acres) of geothermal leases covering private and State lands. A resource report by GeothermEx estimates a 40 MW (net) inferred resource.
A large-diameter development test well and two deep slim wells have been completed indicating 265°F thermal water at shallow depths along a fault system on the western edge of the Warner Valley Rift. An MT survey and an additional exploratory slim well, funded by Ormat and the Department of Energy (DOE) under a cost-sharing agreement, is planned to explore in the valley adjacent to past drilling.
Market Conditions Improving
Market conditions are improving for baseload (but flexible) geothermal power developers in California and Nevada. Positive factors include:
- Construction is underway of the One Nevada Transmission Line which will connect northern Nevada geothermal resources to the southern California power market.
- 1100 MW of base load coal generation in Nevada to be phased out and replaced by gas fired turbines and clean energy.
- Permanent closure of the 1100MW San Onofre Nuclear Generating Station (SONGS) in southern California owned by Southern California Edison and San Diego Gas & Electric.
The significant loss base load coal and nuclear power generation capacity in California and Nevada is to be replaced by new gas fired turbine plants and renewable power.
About Alternative Earth Resources Inc.: Alternative Earth Resources Inc. is an experienced renewable energy developer focusing on the development of CLEAN electrical power from high temperature geothermal resources in the United States. The Company owns geothermal leaseholds comprising the New Truckhaven property in Imperial Valley, California; the Pumpernickel and North Valley properties in northern Nevada; and a 50% interest in the Crump Geyser property which it owns with Ormat Nevada Inc. in Lake County, Oregon. These properties, at different stages of exploration and development, cover aggregate inferred resources totaling approximately 200 MW.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Alternative Earth Resources Inc.
Brian D. Fairbank, P. Eng. President & CEO
Toll Free: 866-688-0808
Toll Free: 866-688-0808
SOURCE Alternative Earth Resources Inc.