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OME acquires Rye Patch Humboldt House Geothermal

Salt Lake City, Utah July 28, 2017 – Open Mountain Energy, LLC (“OME”) has acquired the assets of the Rye Patch-Humboldt House Geothermal Project from Presco Energy, LLC (“Presco”). The project is located 28 miles northeast of Lovelock in Pershing County, NV. Pursuant to an Asset Purchase, Project Development, and Royalty Agreement, Open Mountain Energy, LLC acquired approximately 9,165 acres of Federal and Private geothermal leases. In addition to the geothermal leases, the assets acquired by OME include:

  • 9 drilled geothermal wells (potential production or injection wells)
  • A partially constructed power plant, wellfield piping, electrical and interconnection equipment and infrastructure, buildings, pumps, and valves
  • Permits and other rights associated with the wells and operation of the power plant

OME paid Presco $3,000,000 at closing and will make additional payments including production royalties based on the successful development of the geothermal resource.

The Rye Patch-Humboldt House area has been extensively studied by geothermal resource experts. In addition to a multitude of geophysical surveys and tests, the existence of 9 full-size production wells and dozens of thermal gradient wells has allowed resource experts to gather invaluable information about the area’s resource characteristics.

The Project consists of two distinct high enthalpy geothermal resources. Experts have stated that these resources have a combined development potential of 50-100 MW of baseload geothermal capacity.

OME will commence development by utilizing existing geothermal wells and existing infrastructure and drilling up to two additional injection wells. The existing infrastructure will allow OME to achieve a lower cost per installed kw than would normally be the case for a greenfield development.

OME expects the first phase of development to be online by the end of 2018. Utilizing Kaishan power generation equipment, and depending on the well and power plant configuration, OME expects the first phase to generate between 10 and 15 MW’s of net power.

OME plans to develop additional phases of the project over the next several years with the goal of installing over 60 MW of Kaishan power generation equipment by the end of 2019.

About Open Mountain Energy

Open Mountain Energy (www.openmountainenergy.com) is a renewable energy development company specializing in utility scale geothermal and recovered energy projects. Open Mountain’s expertise in developing, managing, and financing power projects combined with Kaishan’s advanced power plant technologies form a vertically integrated premier geothermal and recovered energy company. Open Mountain combines technology, engineering, project development, financing, and operation, to make its projects highly energy efficient and environmentally friendly. Open Mountain is based in Salt Lake City, Utah and has projects under development in the United States and Canada.

About Kaishan Group

Kaishan (www.kaishancomp.com) is a world leader in compressor technology and manufacturing. It’s the largest supplier of air compressor equipment in Asia and the third largest in the world. The Kaishan Group includes manufacturing of modular steam and ORC-based screw expander generators, applying its global leading technology to geothermal and recovered energy applications.

Kaishan Group is headquartered in Quzhou, China, has more than 4,100 employees, offices in 6 countries, and has 200 sales outlets in 60 countries. During the first three quarters of 2016, Kaishan’s sales amounted to 1.23 billion RMB ($178 million US). Kaishan has no long-term debt and as of December 2016 has a Dun and Bradstreet investment grade rating of 5a2.

About Presco Energy, LLC

Presco Energy, L.L.C. is in Castle Pines, Colorado and primarily operates an Energy Conservation Engineering business. Presco acquired the Rye Patch-Humboldt House Geothermal Project Rye Patch in 2004.

For additional information contact: Brady Olson - brady@openmountain.squarehook.co