US Geothermal Inc : Development Update
08/08/2012| 12:36pm US/Eastern
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August 8, 2012
TRADING SYMBOLS:
In the U. S.: NYSE MKT: HTM and in Canada: TSX: GTH
U.S. GEOTHERMAL PROVIDES DEVELOPMENT UPDATE
BOISE, Idaho - August 8, 2012 (NYSE MKT: HTM;
TSX: GTH) U.S. Geothermal Inc., a leading
renewable energy company focused on the development,
production and sale of electricity from geothermal energy,
provides this update of construction work for the new
22 net megawatt ("MW"), air cooled power plant at Neal Hot
Springs, located in Malheur County, Oregon and the newly
completed 8.6 net MW, water cooled power plant at San Emidio
Unit I located in Washoe County, Nevada.
Construction work at the Neal Hot Springs power project is
approximately 93 percent complete and is scheduled to achieve
a commercial operation date ("COD") in the fourth quarter of
2012. To address a specific vibration issue in the turbine
gearbox, adjustments to the three generating modules of the
power plant are occurring based on similar adjustments that
are currently taking place at San Emidio Unit I. The
adjustments include replacing a pair of high-speed turbine
gearbox shaft bearings with larger ones and adding a "swirl
break" behind the turbine wheel. The swirl break is designed
to disrupt an unwanted pressure wave identified by the
turbine manufacturer. At San Emidio the EPC contractor also
discovered a problem with the silencer and has developed a
replacement unit that will be installed during the current
shutdown. The silencer issue will also be evaluated at Neal
Hot Springs.
Drilling for the remaining injection capacity at Neal Hot
Springs began on June 12 at well NHS-14 which was drilled to
a depth of 1,688 feet. The well encountered modest
permeability and is being evaluated as to its injection
capacity. Drilling then moved to well NHS-4 which
successfully intersected the major permeability in reservoir
formation at a depth at 5,960 feet. Initial flow test results
indicate that NHS-4 is a significant injector. One additional
injection well, scheduled to begin next week, is expected to
complete the drilling program. To date, approximately 85
percent of the required injection capacity has been
drilled.
At San Emidio, Unit I achieved COD May 25 and has been
earning revenues since then. The current shutdown began July
27 and is expected to be complete mid August. While the
shutdown reduces revenues in July and August, the plant
operates at high availability when online. Discussions are
currently underway with the EPC contractor for a final
settlement of the contractual delay issues and the
construction loan. A take out lender has provided an
attractive term sheet for long term project finance to
replace the existing $30 million
construction loan. The parties expect to complete the
long-term financing in about 90 days.
Website : www.usgeothermal.com
NYSE MKT: HTM TSX: GTH
Daniel Kunz, Chief Executive Officer of U.S. Geothermal Inc.,
said, "The progress underway is consistent with our plan to
finish the ongoing construction and adjustments at San Emidio
and Neal Hot Springs this year to provide the company stable
revenue and earnings in 2013. Our focused and very
experienced development and operations teams at U.S.
Geothermal have now constructed and will be operating three
geothermal power projects since completing Raft River in
2008."
Please visit our Website at: http://www.usgeothermal.com
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading renewable energy
development company that is operating geothermal power
projects at Raft River, Idaho and San Emidio, Nevada. The
Neal Hot Springs project, which is currently under
construction, 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
sites. The San Emidio project is currently undergoing certain
mechanical adjustments to the new 8.6 net MW binary cycle
power plant.
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
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 ongoing
injection well drilling at Neal Hot Springs and financing at
San Emidio and repairs at both projects . 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. 1505 Tyrell Lane, Boise, ID 83706
208-424-1027 www.usgeothermal.com
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