U.S. Geothermal Announces First Distribution of Profits from the Neal Hot Springs Project
March 10, 2014 (Source: Marketwired) — U.S. Geothermal Inc. (NYSE MKT:HTM) (TSX:GTH) (the “Company”), a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today that Oregon USG Holdings LLC has made its first distribution of profits from the Neal Hot Springs project. Oregon USG Holdings is owned 60% by U.S. Geothermal and 40% by a subsidiary of Enbridge Inc. Under the terms of the U.S. Department of Energy loan agreement, profits are distributed to the equity partners semi-annually (February and August) following Final Completion, which was achieved on August 1, 2013. U.S. Geothermal’s share of this first distribution is $4.6 million, out of a total distribution to the partners of $7.7 million, which represents profits generated from the project since initial operation began in November 2012.
“After years of effort by our team, we are now realizing significant cash flow from the Neal Hot Springs project,” said Dennis Gilles, Chief Executive Officer of U.S. Geothermal Inc. “And, while the amount of this first distribution represents profits generated over a longer time period than future anticipated semi-annual distributions, it is an important milestone, with the project operating both successfully and contributing predictable cash flow to the Company. This cash, in addition to the previously announced cash received with the resolution of the equity ownership percentage, places our company on a very solid footing to support our current growth activities.”
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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 at El Ceibillo, an advanced stage, geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area in Guatemala, 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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