Magma Energy Provides Drilling Update and Announces Expansion in Iceland

Magma Energy Corp. has provided an update on its operations in HS Orka in Iceland, in which the company has 46.18% ownership. By July end, Magma Energy intends to increase its ownership stake to 98.53% in HS Orka.

Recently, HS Orka had taken over the ownership of a Fuji Electric turbine generator with 50 MW capacity for its Reykjanes energy plant that currently generates 100 MW from its twin Fuji units.

Furthermore, HS Orka intends to expand its capacity at Reykjanes to 180 MW in two phases. As part of this expansion plan, an initial 50 MW capacity is likely to become operational by 2012 and a surplus 30-MW capacity is expected by 2013. Drilling is underway for the expansion in order to increase additional capacity for the power plants. The 50-MW expansion plan is slated for a budget of $116 million. The CEO of Magma Iceland Asgeir Margeirsson mentioned that the HS Orka and Magma Iceland teams are really working well together in terms of planning the power projects. He also added that the company is very much pleased with the encouraging results obtained from the novel turbine at Reykjanes.