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Message: Western GeoPower Acquires Second Geothermal Reservoir in California

Western GeoPower Acquires Second Geothermal Reservoir in California

posted on May 07, 2009 08:45AM
May 6, 2009
Western GeoPower Acquires Second Geothermal Reservoir in California
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2009) - Western GeoPower Corp. (TSX VENTURE:WGP) (FRANKFURT:WE6), a renewable energy company, today announced the acquisition of approximately 3,000 acres of private geothermal leases with a confirmed high-temperature geothermal reservoir, at South Brawley, in Imperial County, California. The South Brawley leases grant Western GeoPower the right to develop the geothermal reservoir and build a plant for electricity generation.

Commercial geothermal power has been generated continuously throughout Imperial County since the early 1980s, with the present generation level being about 530 megawatts (MW) from the Salton Sea, East Mesa and Heber plants. The Western GeoPower leasehold is situated in the South Brawley Known Geothermal Resource Area, with extensive infrastructure throughout the region providing ready access for development.

A preliminary review of earlier data from the Western GeoPower South Brawley leases conducted by independent consultants GeothermEx, Inc., has determined that the leases lie at the core of a geothermal anomaly which has been well defined from geophysical surveys. Four deep wells plus a side-track of a well (varying in depth from 13,381 feet to 14,000 feet) were drilled and flow tested on the Western GeoPower property between 1978 and 1982. In addition, a prolonged (34-day) pressure interference test was run in this field during 1982-1983.

Although these wells are now plugged and abandoned, they have confirmed the existence of a high temperature (up to 278 degrees C or 532 degrees F) reservoir, and pressure interference testing has demonstrated the existence of high flow and storage capacities within the reservoir. A wellhead productivity of 700,000 pounds per hour (equivalent to about 7 MW) had been demonstrated by well testing. However, these wells had a narrower diameter than is conventional for geothermal wells today and the wells showed major formation damage. New wells with a larger diameter drilled on the property should have a much higher productivity.

The reservoir fluid is hyper-saline with a total dissolved solids content of 22% to 23% and a non-condensable gas concentration in the total fluid of 2% to 2.5%. The reservoir brine is highly enriched in dissolved zinc, lead and silver. Preliminary modeling indicates that the property can readily support simultaneous power generation and commercial production of zinc, lead and silver.

"The South Brawley leases complement Western GeoPower's strategy to acquire geothermal projects with demonstrated production potential," said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. "We are confident of achieving substantial time and cost savings by taking advantage of the earlier well testing data and targeting new wells to intersect the known productive zones."

Western GeoPower will retain GeothermEx, Inc. of Richmond, California, to provide an independent assessment of the potential for the South Brawley leases and design a drilling program to confirm the resource. GeothermEx has conducted well test analyses, resource assessment, reservoir simulation and mineral recovery modeling for this site for various parties since the inception of this project in the late 1970s.

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 Sonoma County, California, United States; the South Brawley geothermal project in Imperial County, 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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