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MAGMA POWER CO. COMPLETES ACQUISITION OF UNOCAL GEOTHERMAL ASSETS

 SAN DIEGO, March 31 /PRNewswire/ -- Magma Power Co. (NASDAQ: MGMA) announced that it completed the acquisition today of Unocal Corp.'s geothermal assets in the Imperial Valley of California.
 In one of the largest single geothermal asset sales in history, Magma Power purchased the Unocal assets for $225 million, plus contingent payments based on possible future development of new power generating capacity. All revenues and earnings from the acquired assets accrue to Magma Power Co. as of Jan. 1, 1993, with the net cash flow for the first quarter of 1993, accounted for as an adjustment in the purchase price. The assets will not contribute to Magma's reported operating results until the second quarter of 1993.
 Financing for the acquisition was arranged by Morgan Guaranty Trust Co. of New York, through a $140 million term loan, with Fuji Bank Ltd. and Credit Suisse as participating banks. the balance of the acquisition cost was funded by cash. Magma plans to refinance the short-term debt with non-recourse, project-level debt.
 The acquisition increased Magma Power's electric power generating capacity from approximately 160 MW, to 240 MW, making Magma one of the world's largest geothermal power producers. "The addition of these assets establishes Magma as the dominant geothermal power producer in the Imperial Valley, one of the prime geothermal resources in the world," stated Paul Pankratz, Magma Power Co. chairman and chief executive officer. "As a result," he added, "we are strategically positioned to play a growing role in providing clean, renewable energy to the Southern California marketplace."
 The effective date of the acquisition agreement was Jan. 1, 1993, with a closing date of March 31, 1993. "We're especially pleased that we were able to stay on schedule and meet the commitment to close the transaction by March 31," stated Pankratz. "We're proud of the determined efforts of all of our people. We got the job done when we said we would do it."
 Included in the acquired Imperial Valley geothermal interests are three power plants at the Salton Sea known geothermal resource area (KGRA), plus lease holdings of 40,600 net acres with potential reserves of more than 1,000 MW at Salton Sea, Brawley, Truckhaven and Wister. The operating plants consist of a 10 MW unit, a 20 MW unit and a 50 MW unit, producing a total of more than 630,000 MWH of electricity per year for sale to Southern California Edison and currently generating annual revenues of about $70 million. In addition, Magma acquired an immediately exercisable contract option to supply an additional 20 MW of electric power under a negotiated contract.
 Also being acquired from Unocal are its geothermal assets at Mammoth, Calif., consisting of 12,000 acres of geothermal leaseholds, as well as 58,300 acres of geothermal leaseholds in Nevada.
 Magma Power Co., a San Diego-based firm, holds geothermal leaseholds in California and Nevada and manages the operating of geothermal power plants in which it owns a significant interest. Magma Power also receives royalties, management service fees, interest and rental income from the plants and properties and earns substantial investment income.
 -0- 3/31/93
 /CONTACT: Wallace C. Dieckmann, VP, treasurer and controller of Magma Power, 619-622-7800/
 (MGMA)


CO: Magma Power Co.; Unocal Corp. ST: California IN: UTI OIL SU: TNM

MS-BP -- SD008 -- 1723 03/31/93 17:23 EST
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Date:Mar 31, 1993
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