Alternative Earth Resources Inc. Reviews Status of California, Nevada and Oregon Geothermal Development Projects
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
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
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.