BOISE, Idaho, July 10 /PRNewswire-FirstCall/ -- (Amex: HTM, TSX: GTH)
U.S. Geothermal Inc. ("U.S. Geothermal"), a renewable energy company
focused on the production of electricity from geothermal energy, announced
today that the first full size production well (NHS-1) at the Neal Hot
Springs Project was successfully completed on May 23 and an initial flow
test confirms the presence of a geothermal reservoir.
NHS-1 encountered a large, productive, geologic fracture in the Neal
Hot Springs geothermal reservoir at 2,287 feet below surface and was
completed to a depth of 2,305 feet. Drilling was stopped 375 feet above the
original target due to high torque on the drill bit and a total loss of
drilling mud returning to the surface.
Initial flow testing resulted in a flowing temperature inside the well
casing of 277 degrees F (136 degrees C). The new well flowed under artesian
pressure at 1,200 gallons per minute ("gpm"), but was controlled and
reduced to 800 gpm for the duration of the test due to equipment
constraints. Mr. Richard Holt, an independent consulting geothermal
reservoir engineer, has calculated a productivity index for the well with a
range of 300 to 500 gpm/psi. "Any productivity index over 100 gpm/psi is
extremely high in relation to the worldwide geothermal industry," said Mr.
Holt.
"Although the flowing temperature at this specific depth is 277 degrees
F (136 degrees C), the extremely high productivity index indicates
potential production of five to six megawatts from this well," said Daniel
Kunz, President and CEO. "This is a great start for development of the Neal
Hot Springs project."
The bottom hole flowing temperature of the well was measured 287
degrees F (142 degrees C) and indicates that increased depth may yield
higher reservoir temperatures. Geothermometer analysis of the geothermal
fluid produced during the test also indicates that the reservoir
temperature may be higher at greater depth. The chalcedony geothermometer
shows a reservoir temperature of 322 degrees F and the
sodium-potassium-calcium geothermometer is 350 degrees F.
A second, higher rate flow test is planned within the next 30 days to
provide additional data that will be used for reservoir analysis. Permits
for three more wells were submitted to the Oregon Department of Geology
Mineral Industries in April and are pending approval.
About U.S. Geothermal:
U.S. Geothermal is a renewable energy development company that is
operating geothermal power plants at Raft River, Idaho and at the San
Emidio Desert in Nevada. The Neal Hot Springs project in eastern Oregon is
being explored for a commercial reservoir. U.S. Geothermal holds, through
ownership or lease, geothermal rights of lands that comprise the Raft River
project in Idaho, San Emidio, Granite Ranch, and Gerlach in Nevada, and the
Neal Hot Springs project in Oregon.
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,
including statements regarding potential energy resources and projects,
development possibilities 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 American Stock Exchanges do not accept responsibility for
the adequacy of this release.
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SOURCE U.S. Geothermal Inc.
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Related links:
http://www.usgeothermal.com
CONTACT:
investor relations, Saf Dhillon of U.S.
Geothermal Inc., 1-866-687-7059, fax, +1-604-688-9895,
saf@usgeothermal.com; or media relations, Melinda Keckler of
Scott Peyron & Associates, Inc., +1-208-388-3800, fax,
+1-208-388-8898, mkeckler@peyron.com, for U.S. Geothermal Inc.
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