Message #9 From:
NewsBot Date: February 28, 2008 06:22:33 PM
U.S. Geothermal Receives Drilling Permit for Neal Hot Springs Project
U.S. Geothermal Inc. ("U.S. Geothermal") (TSX: GTH)(OTCBB: UGTH), a
renewable energy company focused on the production of electricity from
geothermal energy, announced today that the Oregon Department of
Geology and Mineral Industries (DOGAMI) has issued a drilling permit
for the first full size exploration well at the Neal Hot Springs
Project located in eastern Oregon.
The new exploration well is permitted for a depth of 3,500 feet and
is expected to further develop a geothermal resource discovery made by
Chevron Resources in l979. The surface discharge of Neal Hot Springs
was sampled and shows a potential source temperature of 311 to 347
degrees F.
"Neal Hot Springs provides an excellent target for us, and is
consistent with our corporate focus of reducing risk by taking on
projects that have a discovery," said Daniel Kunz, President and CEO.
"We anticipate drilling the well during the second quarter of the year,
once a drill is contracted and site preparation is complete.
A water supply well to support the drilling operation was completed
at the site in December 2007. Construction of the access road, drill
pad and test pond is scheduled to commence within the next 15 days, and
it is expected that drilling operations will start within the next
30-60 days depending upon availability of a suitable drill rig. Upon
completion of the well, flow testing and reservoir engineering will
commence. It is anticipated that temperature and flow results from the
well may be available by the end of the second quarter.
The Neal Hot Springs project was selected by Idaho Power Company for negotiation of a 26 megawatt power purchase agreement.
About U.S. Geothermal:
U.S. Geothermal is a renewable energy development company that is
operating a geothermal power project at Raft River, Idaho and
developing Neal Hot Springs in eastern Oregon. U.S. Geothermal holds,
through ownership or lease, geothermal rights of lands that comprise
the Raft River and Neal Hot Springs projects.
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,
including statements regarding potential energy resources and projects,
development possibilities for Raft River and Neal Hot Springs. 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. 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 TSX and OTC Bulletin Board Exchanges do not accept responsibility for the adequacy of this release.
