U.S. Geothermal Inc.: Drilling Commences for San Emidio Phase II Project
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: http://www.usgeothermal.com
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.
U.S. Geothermal Inc.
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