Boise-based U.S. Geothermal Inc., a renewable energy company focused on the development, production and sale of electricity from geothermal energy, has acquired two underlying geothermal mineral ownership interests at the Neal Hot Springs project in eastern Oregon.
U.S. Geothermal President Daniel Kunz said in a statement, “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.”
A 25 percent mineral interest, which encompasses 600 acres, was purchased from a private estate. An option to purchase an additional 25 percent 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 percent mineral ownership and 1,510 acres of 25 percent 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.