RE: RE: NGP: CASE 2
Actually I estimated the entire entity at $160 million, which includes the wells, its infrastructure including the power line to the utility's substation.
Geothermal resource companies like most all resource start-ups experience difficulties. Check out the new production created by Ram Power, US Geothermal and Alterra Power's NA projects and compare them with NGP's and not saying that those companies won't click, but NGP even with its troubles looks better on a pure production basis. The 14% loan seems to be the big problem, not the geothermal heat losses, which they seem to be improving.
I feel the 36 MW net is a given and 41 MW net is reasonably attainable and even possible without further wells. Actually 36 MW is about ~88% of the 41 MW net that NGP indicated BM -1 would produce. Even Ormat a major geothermal power producer has difficulties attaining their projected MW's.
The 14% loan is BM 1's main problem and EIG does nothing to help, even though she describes herself as a partner to those she lend to, per her website.
NGP at 2.5 cents could be an interesting buy.