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Message: Completes First Phase of Geysers Drilling
| December 24, 2008 |
| Western GeoPower Completes First Phase of Geysers Drilling |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2008) - Western GeoPower Corp. (TSX VENTURE:WGP)(FRANKFURT:WE6), a renewable energy development company, today announced that the four wells drilled to date at the Western GeoPower Unit 1 project at The Geysers Geothermal Field in California are considered to have sufficient power capacity behind pipe to satisfy the minimum requirements for project financing. Accordingly, further drilling has been deferred until receipt of project financing to construct the 35 MWe power plant, which is anticipated for the second quarter of 2009. An assessment by independent consultants GeothermEx, Inc. of the four wells, designated WGP-1 through WGP-4, states that the total net initial power capacity from the four wells is estimated at 26.1 MW, which represents 74.6% of the initial plant capacity of 35 MW (net). Experience at The Geysers shows that when a plant is put on line the wells undergo a 10% to 30% decline within a few weeks before the productivity stabilizes and the long-term productivity decline trend ensues. Assuming an average 20% decline before stabilization, the four completed wells represent a total stabilized flow capacity of 20.9 MW (net), or 5.22 MW (net) per well. GeothermEx concludes that the 35 MW (net) capacity plant can be supplied initially by seven production wells instead of eight wells as initially projected, in addition to one new injector well. With the first four wells having been completed under budget and approximately three months ahead of schedule, deferring the drilling of the remaining wells is not expected to adversely impact the projected Commercial Operating Date for the power plant in 2010. "Our original forecast called for the drilling of up to six wells to satisfy the anticipated banking requirement of 60% of the resource being behind pipe," said Kenneth MacLeod, President & CEO of Western GeoPower. "Having achieved the resource target with four wells enables us to significantly reduce our monthly expenditures until receipt of project financing, by focusing on permitting and engineering issues during the current period of financial market instability." The Geysers geothermal field, located 75 miles north of San Francisco, California, is the largest producer of geothermal electricity in the world. Commercial geothermal power has been generated continuously at The Geysers field since 1960, the present generation level being about 900 MWe of clean, baseload electricity. Western GeoPower's Unit 1 project is situated in the south-western region of The Geysers field in Sonoma County. About Western GeoPower Corp. Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, sustainable, baseload electricity generation. The Company is developing The Western GeoPower Unit 1 geothermal power plant at The Geysers Geothermal Field in California, United States and the South Meager Geothermal Project in British Columbia, Canada. On behalf of the Board of Western GeoPower Corp. Kenneth MacLeod, President & CEO |
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