TRADING SYMBOLS:
In the U. S.: NYSE MKT: HTM and in Canada: TSX: GTH October
29, 2012
The MOU establishes the framework for a PPA that includes a
15-year term for up to 50 megawatts of power generation each
year. The MOU includes a project power price that is
competitive with the prevailing energy prices in the region.
As published by Guatemala's wholesale market administrator,
this year's average monthly spot power price through
September is more than $145.00 per megawatt-hour. Several
conditions precedent must be met before the PPA becomes
effective including confirming the geothermal reservoir by an
independent reservoir engineer, obtaining all required
permits and authorizations, and securing a project finance
commitment.
Daniel Kunz, Chief Executive Officer of U.S. Geothermal Inc.,
said, "This MOU is the framework for a PPA that will provide
the necessary conditions to secure long term project finance
and create attractive project economics. El Ceibillo is an
important energy project that will expand Guatemala's use of
renewable energy and lessen its dependence on imported fossil
fuels".
El Ceibillo is an advanced stage geothermal prospect located
within a 24,710 acre (100 square kilometers) energy rights
concession area, and is located near a major transmission
line in an industrial area approximately 8.5 miles (14
kilometers) southwest of Guatemala City, the largest city in
Central America. Nine wells were drilled at El Ceibillo
during the l990's, to depths ranging from 560 to 2,000 feet
(170-610 meters). Six of the wells have measured temperatures
of 365°F to 400°F (185°C to 204°C). These six wells have high
conductive thermal gradients that indicate rapidly increasing
temperatures with depth. By re- entering and deepening
several existing wells, and drilling new ones, the Company's
planned exploration program targets a deeper,
higher-permeability reservoir with an expected production
temperature between 410°F to 446°F (210°C to 230°C). An
initial 25-megawatt power plant utilizing double flash steam
technology is planned. The project is currently expected to
achieve production in late 2015, subject to successful
drilling and financing.
Please visit our Website at: http://www.usgeothermal.com
U.S. Geothermal Inc. is a leading renewable energy
development company that is operating
Website : www.usgeothermal.comNYSE AMEX: HTM TSX: GTH
geothermal power projects at Raft River, Idaho and San
Emidio, Nevada. The Neal Hot Springs project, located in
eastern Oregon, is currently in startup mode and will be the
company's third operating power project. The company holds
geothermal energy rights to
69,500 acres comprising six advanced stage geothermal
development projects.
Saf Dhillon - Investor Relations
U.S. Geothermal Inc. Tel: 866-687-7059
Fax: 208-424-1030
saf@usgeothermal.com
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 Amex and the TSX do not accept responsibility for the adequacy of this release.
U.S. Geothermal Inc. 1505 Tyrell Lane, Boise, ID 83706 208-424-1027 www.usgeothermal.com
distributed by |