Ann: GENERAL: MRP: MRP takes direct control of ge

• Release Date: 15/02/13 12:11
• Summary: GENERAL: MRP: MRP takes direct control of geothermal interests
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MRP
15/02/2013 10:11
GENERAL

REL: 1011 HRS Mighty River Power Limited

GENERAL: MRP: MRP takes direct control of geothermal interests

Mighty River Power Limited today announced that it had reached an agreement
to take direct control of geothermal investments in the United States
(EnergySource) and Chile.

The agreement with the Managing Partners of GeoGlobal Energy (GGE) LLC, the
manager of the GGE Fund in which Mighty River Power is the cornerstone
investor, provides for Mighty River Power to take full ownership and direct
control of:

- The GGE Fund's minority interests in EnergySource, a geothermal development
and operating company based in the United States, including its related
entities.

- All of the Fund's geothermal interests in Chile, including the Fund's
development projects at Tolhuaca in Southern Chile and Puchuldiza in Northern
Chile and the operating business based in Santiago and all its employees
based in Chile.

GeoGlobal Energy LLC will take direct ownership and control of the Fund's
interests in Germany, and assets in the US not related to EnergySource.
Mighty River Power will retain an option for an economic interest in the
assets in Germany but will have no ongoing management involvement.

Mighty River Power will transfer its ownership interest in GeoGlobal Energy
to the Managing Partners and pay them US$24.8 million on final close expected
over the next few months. Under the terms of the agreement, both parties will
now be free from geographic restriction or exclusivity in pursuing future
geothermal opportunities. By terminating the existing agreements half-way
through the 10-year term of the GGE Fund, Mighty River Power also avoids,
among other things, future obligations for management fee payments to GGE.

Mighty River Power Chief Executive, Doug Heffernan, said that during the
five-year relationship the GGE partnership had developed one of the largest
global portfolios of geothermal opportunities. The structure of the new
agreement reflected the respective strategic interests and capabilities of
Mighty River Power and GGE and the best way to mobilise further capital to
build out the opportunities in each country where the Fund's assets are
located.

Dr Heffernan said, "We see this agreement as a natural evolution and
transition from the GGE relationship which successfully provided an entry
point for us into international geothermal in 2008 through the GeoGlobal
Energy Fund.

"Mighty River Power remains committed to a strategy of applying our
geothermal experience and expertise gained through our domestic geothermal
exploration, development, construction and operations. Following completion
of our Ngatamariki project near Taupo (New Zealand) in mid-2013, we do not
expect development opportunities in New Zealand within the next three to five
years due to market conditions - and international markets offer better
opportunities for geothermal growth."

"Mighty River Power's strong New Zealand geothermal operating business and
long term strategic horizons can better leverage our capabilities for
developments in Chile and we see a lot of potential synergies between our
business and EnergySource as an operator and developer of a large brownfield
geothermal reservoir in the US."

Dr Heffernan said an immediate priority was to integrate the Chilean
business, which includes approximately 50 people headquartered in Santiago,
as a subsidiary of Mighty River Power reporting to GM Development, Mark
Trigg.

"The Company sees Chile as an exciting geothermal development prospect with
sound fundamentals of high-quality resources, a stable political and legal
environment, along with strong economic and electricity demand growth. The
Company will develop a strategic plan for the business in Chile, utilising
the knowledge of the staff in Chile and experience we have gained through the
GGE relationship, and from experience gained over the past decade developing
a significant geothermal business in New Zealand."

In the US, Dr Heffernan said Mighty River Power would appoint Mr Trigg to the
EnergySource-related governance entities. EnergySource operates the 49.9MW
John L. Featherstone power station commissioned in 2012 and is advancing the
Hudson Ranch Power II project - a second station of the same capacity.

Mighty River Power would maintain a measured and prudent approach to
international development opportunities, and any related capital commitments.
This restructuring of arrangements with GGE creates an opportunity to
re-evaluate and focus the Company's international geothermal programme, Dr
Heffernan said.

An update on Mighty River Power's international geothermal investments will
be provided in association with the release of the Company's HY2013 accounts
on February 21.

ENDS
End CA:00232989 For:MRP    Type:GENERAL    Time:2013-02-15 10:11:32