BOISE, Idaho, Dec. 13, 2017 (GLOBE NEWSWIRE) -- U.S. Geothermal Inc. (the "Company") (NYSE American: HTM), a leading and profitable renewable energy company focused on the development, production, and sale of electricity from geothermal energy, announced today that it has reached an agreement to acquire its partner's remaining ownership interest in Raft River Energy I LLC from Goldman Sachs. The purchase is scheduled to close on January 2, 2018 and the price consists of a one-time, $350,000 cash payment from U.S. Geothermal to Goldman Sachs. The Company will then own 100 percent of the project.
"The acquisition of this remaining interest in Raft River will be immediately accretive to the Company, and further enables us to implement capital upgrades to increase output from the facility," said Douglas Glaspey, Interim Chief Executive Officer. "This transaction confirms our ability to grow the business with a disciplined approach to capital allocation by focusing on acquisitions that are strategic to our core business and by increasing generation at our existing power plants."
Raft River Energy I is located in Southern Idaho, near the town of Malta, and achieved commercial operation on April 3, 2008.
The Raft River facility is a single, 18-megawatt (gross) module, with a design output of 13 megawatts (net) annual average based on a specific flow and temperature of geothermal brine. The PPA for the project was signed on September 24, 2007 with the Idaho Power Company and allows for the sale of up to 13 megawatts of electricity on an annual average basis over a 25-year term. Renewable Energy Credits are sold under a separate contract. In 2018, the PPA energy price, plus the value of the renewable energy credit will be $74.32 per megawatt-hour.
The Company is in a continuing process to increase generation at Raft River through modifications at the existing facility. The addition of production
well RRG-5 along with upgrades to the injection system in 2017 increased the average generation from the Raft River plant by approximately 1.6 net megawatts. Due to the positive response from the wellfield, which showed a minimal decrease in fluid levels, a study to increase the capacity of production pump RRG-4 in 2018 will be analyzed.
The RRG-4 upgrade project would consist of increasing the capacity of the pump to produce approximately 400-500 gpm more fluid to the plant. This would result in an estimated generation increase of approximately 0.6 to 0.7 net megawatts annual average, or approximately $400,000 of additional revenue for a full year of production. Additional upgrades of wells and surface facilities that would increase revenue are under consideration.
U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading and profitable renewable energy company focused on the development, production and sale of electricity from geothermal energy. The Company is currently operating geothermal power projects at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho for a total power generation of approximately 39 MWs. The Company is also developing an additional estimated 110 MWs of projects at: the Geysers, California; a second phase project at San Emidio, Nevada; at
Crescent Valley, Nevada; and the El Ceibillo project located near Guatemala City, Guatemala. U.S. Geothermal's growth goal is to reach over 200 MWs of generation by 2022 through a combination of internal development and strategic acquisitions.
Please visit our Website at: http://www.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. Readers are cautioned to review the risk factors identified by the company in its filings with United States Securities and Exchange Commission. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the staffing of executive positions, development schedules or estimated resources of U.S. Geothermal, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. These forward-looking statements may include statements regarding perceived merit of properties;
interpretation of the results of well tests; project development; resource megawatt capacity; capital expenditures; timelines; strategic plans; or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from U.S. Geothermal's expectations include the uncertainties involving the availability of financing in the debt and capital markets; uncertainties involved in the interpretation of results of well tests; the need for cooperation of government agencies in the development and operation of properties; the need to obtain permits and
governmental approvals; risks of construction; unexpected cost increases, which could include significant increases in estimated capital and operating costs; and other risks and uncertainties disclosed in U.S. Geothermal's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the United States Securities and Exchange Commission and Canadian securities regulatory authorities and in other U.S. Geothermal reports and documents filed with applicable securities regulatory authorities from time to time. 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 American does not accept responsibility for the adequacy of this release.
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Scott Anderson - Director of Investor Relations and Corporate Communications
U.S. Geothermal Inc.
Source: U.S. Geothermal, Inc.
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