HTM U.S. Geothermal Inc. (delisted)

BOISE, Idaho, July 10 /PRNewswire-FirstCall/ -- (AMEX:HTMAMEX:TSX:AMEX: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. DATASOURCE: U.S. Geothermal Inc. CONTACT: investor relations, Saf Dhillon of U.S. Geothermal Inc., 1-866-687-7059, fax, +1-604-688-9895, ; or media relations, Melinda Keckler of Scott Peyron & Associates, Inc., +1-208-388-3800, fax, +1-208-388-8898, , for U.S. Geothermal Inc. Web site: http://www.usgeothermal.com/

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