U.S. Geothermal Inc. (TSX: GTH; AMEX: HTM) has acquired a 3.6-megawatt (MW) operating geothermal power plant from Michael B. Stewart (individually) and Empire Geothermal Power LLC. The deal also included 28,358 acres (44.3 square miles) of geothermal energy leases and certain ground water rights, all located north of Reno, Nevada.
The total purchase price was US$16.62 million, and the transaction was structured with an initial closing on April 1, 2008 and the final closing on April 30, 2008. The assets are comprised of two locations: the San Emidio assets and the Granite Creek assets. The San Emidio assets are located in the San Emidio Desert, Washoe County, Nevada and include the geothermal power plant project, approximately 22,944 acres (35.9 square miles) of geothermal leases, and ground water rights used for cooling water. The Granite Creek assets are comprised of approximately 5,414 acres (8.5 square miles) of BLM geothermal leases located about 6 miles north of Gerlach, Nevada along a geologic structure known to host geothermal features including the Great Boiling Spring and the Fly Ranch Geyser.
The 3.6-megawatt geothermal power plant has been producing power since 1987 and sells electricity to Sierra Pacific Power Corp. under an existing power purchase agreement that extends through 2017. A March 2008 resource assessment of the San Emidio geothermal leases by independent experts Susan Petty and Dennis Trexler of Black Mountain Technology shows a total resource potential of 44 MW with a 90% probability factor.
About U.S. Geothermal:
U.S. Geothermal is a renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada and is exploring the Neal Hot Springs project in eastern Oregon.
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