U.S. Geothermal Inc. today announced its financial and operating results for the fourth quarter and full year ended December 31, 2016, reaffirmed guidance for 2017 and highlighted notable achievements in 2016.
“Our outstanding operational performance during the fourth quarter allowed us to make up for the majority of the $2.3 million negative impact from equipment breakdowns that had occurred earlier during the year, allowing for revenues and gross profit that were in line with the prior year,” said Dennis Gilles, Chief Executive Officer. “While the market for baseload renewable has been somewhat stalled, we look forward to 2017, and we remain extremely focused on our growth goal of reaching over 200 MWs of generation by 2021 through a combination of new power plant contribution, the expansion of existing operations and increased capacity from potential acquisitions.”
Development Projects Update
- Completed the deepening and testing of two wells at San Emidio II. Both wells encountered high permeability and a resource that is 44°F hotter than the Phase I resource. A new resource estimate expanded the resource size from 10 megawatts up to 47 megawatts.
- Acquired three unconstructed binary power plants in early 2016 having an output potential of up to 45 megawatts, which are now planned to be utilized for this expanded San Emidio II project.
- Completed the drilling and testing of a production size well at El Ceibillo in Guatemala. Results confirm the shallow resource is commercial.
- Completed the drilling of a second production leg on well RRG-2 at Raft River. The well is now back in production.
- Performed a heat up and flow test of well RRG-5 at Raft River, with very favorable results. The well is planned to be placed into operation in late March of 2017.
- A Small Generator Interconnection Agreement was received from NV Energy for the 10 MW San Emidio II expansion but was terminated due to the discovery of the larger resource. An application for a Large Generator Interconnection Agreement for 35+ MW is planned to be submitted during 2017.
- Adjusted projected commercial operation dates for advanced development projects to reflect current projections of market interest. Commercial operation dates are dependent upon acquiring a Power Purchase Agreement.
- Received a $1.5 million grant from the Department of Energy for San Emidio II and Crescent Valley to advance resource evaluation through innovative techniques.
- The final approved Conditional Use Permit from Sonoma County was received in December for our Geysers project.
- Our Geysers project Large Generator Interconnection Agreement was received from the California Independent System Operator and Pacific Gas and Electric.