BOISE, IDAHO — (Marketwired) — 09/04/13 — U.S. Geothermal Inc. (TSX: GTH)(NYSE MKT: HTM), a leading renewable energy company focused on the development, production, and sale of electricity from geothermal energy, announced today that drilling has started for the San Emidio Phase II Project.
As previously announced, U.S. Geothermal is planning to develop the San Emidio project in two phases: a repower (Phase I) and an expansion (Phase II). Phase I was completed in May of 2012, when the existing 3.6 MW plant was replaced with a new, more efficient 9 MW power plant that utilizes the existing geothermal fluid flow from the proven area of the reservoir. Phase II requires drilling new production and injection wells, and upgrading transmission to support the increased power production. The Phase II expansion may produce up to 11 MW (net) to fill the full available output allowed under the existing PPA with NV Energy. Pending a successful drilling program, the Phase II power plant is anticipated to be online in 2015.
The first well to be drilled for Phase II is located approximately 2 miles north of the operating San Emidio Phase I power plant and is planned for a depth of up to 3,000 feet. The targeted area was first identified by three water supply wells drilled for a mining operation in the l990s, which discovered a shallow, hot outflow zone from 300 to 500 feet deep with temperatures of 220 to 240 degrees F.
As part of the continuing DOE innovative exploration program, detailed geologic mapping of the surface features, combined with a satellite survey and five seismic lines were run through the target area. These efforts identified significant fault structures and provided targeting information for the drilling program. Seven wells have been permitted in the Phase II project area. Under the DOE program, there is $991,000 of grant funds remaining that are committed to the second phase of cost shared drilling.
“We are excited to initiate drilling for this second project in the San Emidio resource area,” said Doug Glaspey, President and COO. “Moving the project forward this year will qualify Phase II for the currently available 30% Investment Tax Credit, and will take full advantage of the remaining balance in the 19.9 megawatt PPA we have in place with NV Energy.”
Please visit our Website at:
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects at Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon. The company is also developing El Ceibillo, an advanced stage, steam geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.–s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described, including but not limited to, the results from the exploration, production and injection well drilling at El Ceibillo. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management–s expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management–s expectations, beliefs, or opinions, or other factors, should change.
The NYSE MKT and the TSX do not accept responsibility for the adequacy of this release.
Contacts:
U.S. Geothermal Inc.
Saf Dhillon
Investor Relations
866-687-7059
208-424-1030 (FAX)