Announces Formation of Special Committee to Conduct Strategic Review Process
posted on Jul 15, 2009 06:28AM
Geothermal energy is an environmentally friendly, renewable power source for the Generation of sustainable electrical power
|July 14, 2009|
|Western GeoPower Announces Formation of Special Committee to Conduct Strategic Review Process and Preliminary Results of Reservoir Modeling|
|VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 14, 2009) - Western GeoPower Corp. (TSX VENTURE:WGP) (FRANKFURT:WE6), a renewable energy company, today announced that the company's Board of Directors has established a Special Committee to review, consider and evaluate strategic alternatives that may be available to the Company.
The Special Committee will be chaired by Daryl Clark and will include Harry Knutson and Gudmundur F. Sigurjonsson, all of whom are currently members of the Board. No timetable has been set for completion of the Special Committee's review, and there can be no assurance that this process will result in any specific strategic transaction. The Company does not intend to update its progress with respect to potential strategic transactions unless the Board of Directors has approved a definitive course of action.
The Company previously announced that a review conducted by independent consultant GeothermEx, Inc. of data from the drilled portions of the Company's Unit 1 leasehold had determined that, based on certain assumptions, the maximum capacity for the Company's Unit 1 power plant is 35 MWe (gross).
In conjunction with a proposed financing, the Company retained GeothermEx to develop and calibrate a numerical reservoir model of the entire Geysers field including the Unit 1 leasehold incorporating the down-hole data from the newly drilled wells on the leasehold, plus the production and injection histories of all the wells at The Geysers. The Company has received GeothermEx's preliminary reservoir model update, which indicates that a plant capacity of 35 MWe (net) for five years, followed by a capacity of 32.5 MWe (net) for the remaining project life, can be maintained but only if the undrilled portions of the Unit 1 leasehold prove as productive as the areas drilled to date. In the event the undrilled portions prove to be less productive, GeothermEx's preliminary reservoir modeling indicates a minimum of 25 MWe (net) capacity can be sustained over the project life.
Included in the Special Committee's mandate is determining the various alternatives for advancing the Unit 1 project in light of the preliminary reservoir modeling results. Two initial potential strategies are being evaluated. The first is to commence the initial plant output at 25 MWe (net) and the second is to expand the drilling program to include lands on the Unit 1 leasehold where resources have not yet been proven.
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