U.S. Geothermal acquires mineral rights at Neal Hot Springs
Drilling rig at Neal Hot Springs, Oregon (source: US Geothermal)
Alexander Richter
30 Jun 2010
U.S. Geothermal Inc. subsidiary USG Oregon LLC has acquired two underlying geothermal mineral ownership interests at the Neal Hot Springs project in eastern Oregon.
“U.S. Geothermal Inc. announces that its subsidiary, USG Oregon LLC ( “USG Oregon”), has acquired two underlying geothermal mineral ownership interests at the Neal Hot Springs project in eastern Oregon.”, so a release by the company.
“A 25% mineral interest, which encompasses 600 acres, was purchased from a private estate. An option to purchase an additional 25% interest in 2,110 acres was executed with GCO Minerals Company, a subsidiary of International Paper. The two mineral interest acquisitions in part overlie each other, and when combined provide USG Oregon with 600 acres of 50% mineral ownership and 1,510 acres of 25% mineral ownership in the heart of the defined Neal Hot Springs geothermal reservoir. This acreage includes the two existing production wells, and all of the currently planned new production and injection wells for the 22 megawatt development.
Daniel Kunz, President and CEO of U.S. Geothermal Inc. said, “We can either lease the energy rights by paying a royalty each year or we can own them outright and reduce the annual royalty burden. With the acquisition of these two mineral interests the Neal Hot Springs project will have increased annual cash flows.”
Source: Company release via Marketwire
