U.S. Geothermal Provides Company Update
January 13, 2014 (Source: Marketwired) — 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, provides this update on the results of its three operating projects for the fourth quarter of 2013, and status of development activities.
Neal Hot Springs, Oregon
All three units have been and are operating smoothly, with fourth quarter availability of 94.7%. December generation averaged 27.7 net megawatts per hour for all hours the plant was in service. Total generation for the fourth quarter was 53,550 megawatt-hours, which is a result of excellent availability and low seasonal temperatures. This compares to 25,836 megawatt-hours for the third quarter, 30,015 for the second quarter, and 46,159 for the first quarter. Under the terms of our Power Purchase Agreement (“PPA”), November and December generation for 2013 was paid at a seasonally adjusted price of $118.80 per megawatt-hour, which is 120% of the 2013 average contract price, while October was paid at the average 2013 contract price of $99.00. For 2014, the average contract price will increase from $99.00 to $102.78 per megawatt-hour.
San Emidio, Nevada
The plant performance was exceptional, with fourth quarter availability of 98.3%. December generation averaged 9.96 net megawatts per hour for all hours the unit was in service. Total generation for the fourth quarter was 21,103 megawatt hours. This compares to 18,318 megawatt-hours for the third quarter, 18,039 for the second quarter, and 19,157 for the first quarter. Under the terms of our PPA, generation during the quarter was paid at the price of $90.27 per megawatt-hour. There is no seasonal adjustment under this power purchase agreement. For 2014, the contract price will increase from $90.27 to $91.17 per megawatt-hour.
Raft River, Idaho
The plant performance was exceptional, with fourth quarter availability of 99.2%. December generation averaged 10.2 net megawatts per hour for all hours the plant was in service. Total generation for the fourth quarter was 21,742 megawatt-hours, as a result of excellent availability and low seasonal temperatures. This compares to 18,688 megawatt-hours for the third quarter, 17,247 for the second quarter, and 19,670 for the first quarter. Under the terms of our PPA, November and December generation for 2013 was paid at a seasonally adjusted price of $71.36 per megawatt-hour, which is 120% of the 2013 average contract price, while October was paid at the 2013 average contract price of $59.47. For 2014, the average contract price will increase from $59.47 to $60.72 per megawatt-hour. In addition to the price paid for energy, Raft River currently receives $4.75 per megawatt-hour under a separate contract for the sale of Renewable Energy Credits.
“Our operating team has done an outstanding job this past quarter, particularly considering the unseasonably cold weather that each of our plants experienced during November and December. Our units are all performing with high availabilities, and with output that is at or above what we had expected,” said Dennis Gilles, Chief Executive Officer of U.S. Geothermal. “As a result of this strong fourth quarter, we anticipate our year end to be well within the range of guidance provided earlier, and we look forward to excellent results for the coming year.”
El Ceibillo, Guatemala
Evaluation and testing of well EC-1, which found a higher than anticipated resource temperature of 526°F (274°C), was completed. Based on the results of EC-1, a second round of drilling was planned, and on January 9th drilling began on a series of eight to ten 650 foot (200 meter) gradient wells that will be used to further map the underlying geothermal resource and assist with identifying future drilling targets. This second round drilling program is expected to continue over the next three to four months.
San Emidio, Nevada
We have also completed our evaluation and testing of wells OW-12 and OW-10, and we have applied for and are waiting on the issuance of drilling permits from the U.S. Bureau of Land Management (BLM) before drilling additional wells to further define the resource. Additionally, a detailed development schedule for the Phase II project was submitted to NV Energy, our power off-taker, and we are awaiting their approval.
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 Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho. The company is currently developing a second phase project at San Emidio Nevada, as well as El Ceibillo, an advanced stage, 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 and San Emidio II. 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.
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