Mannvit Engineering’s Geothermal Resources Assessment is Key in Energy Agreement

Magma Energy Corporation announced closure of an agreement to acquire 32% of Iceland geothermal company HS Orka. As part of the technical due diligence, Mannvit Engineering prepared an independent technical report on the geothermal plants and properties of HS Orka in support of Magma’s technical due diligence assessment which was concurrent with its objective of acquiring the ownership stake in HS Orka.

Classification and assessment of HS Orka’s geothermal resources and reserves was an important part of the technical due diligence and an authoritative and objective assessment was required. The resource classifications and assessments of HS Orka’s geothermal resources required review and interpretation of substantial geothermal data produced over more than 30 years of continuous geothermal exploration and production. Extensive numerical simulation effort was an important part of the resource assessment work. Based on its extensive experience in geothermal project development, Mannvit Engineering was requested to prepare this technical report on the geothermal power plants and properties of HS Orka.

The report was prepared in accordance with the Code for Geothermal Resources and Reserves Reporting (the “Code”), 1st Edition: 2008, published by the Australian Geothermal Energy Association. In the report, four of HS Orka’s geothermal properties were determined to have a Proven Reserves totaling 175 MW, Indicated Resources totaling 140 MW and an Inferred Resources of 500 MW. The report was prepared by Mannvit’s geothermal specialists, Arnar Hjartarson and Dr. Johann Gardar Einarsson, who are responsible for its content and are “Competent Persons” according to the Code. For the technical report, Mannvit Engineering received important support and assistance from Vatnaskil Consulting Engineers.

Glacier Partners, a New York and Reykjavik based corporate finance advisory firm, specializing in geothermal energy, provided financial analysis in the report on HS Orka’s geothermal resources.