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WESTERN GEOPOWER ACQUIRES SECOND GEOTHERMAL
RESERVOIR IN CALIFORNIA
VANCOUVER, Canada, May 6, 2009, TSX
Venture Exchange Trading Symbol: WGP – Western GeoPower Corp., 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◦C or 532◦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”
Kenneth MacLeod, President
& CEO
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release contain
forward-looking information within the meaning of applicable securities laws
in Canada
(“forward-looking information”). The words “anticipates”, “believes”,
“budgets”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”,
“might”, “plans”, “projects”, “schedule”, “should”, “will”, “would” and
similar expressions are often intended to identify forward-looking
information, although not all forward-looking information contains these
identifying words.
The forward-looking information in this press
release includes, but is not limited to: new wells with a larger diameter
drilled on the property should have a much higher productivity; preliminary
modeling indicates that the property can readily support simultaneous power
generation and commercial production of zinc, lead and silver; 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; and, the Company 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.
The forecasts and projections that make up the
forward-looking information are based on assumptions which include, but are
not limited to: the Company is not subjected to any material adverse events
normally associated with exploration, development and production of natural
resources; the Company is not subjected to additional governmental regulation
and that political attitudes towards geothermal production does not change;
the Company is able to remain in compliance with its debt obligations; the
Company’s resource estimates are accurate; the Company’s insurance is
adequate and that it does not incur any material uninsured liability; the
Company is able to comply with environmental regulations; the Company has
access to suitable infrastructure; no title defects affect the Company’s
properties; the Company receives necessary permits on acceptable terms; no
material new competition; no significant fluctuation in currency exchange rates
and interest rates; the Company is able to access additional capital; no
material fluctuations in energy prices; continued access to the Company’s key
personnel; and, no conflicts of interest arise.
The forward-looking information is subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from historical results or results anticipated by the
forward-looking information. The factors which could cause results to differ
from current expectations include, but are not limited to: risks normally
associated with exploration, development and production of natural resources;
risks relating to government regulation; risks relating to indebtedness;
risks relating to the reliability of resource estimates; no history of geothermal
production; insurance and uninsured risks; environmental risks and hazards;
lack of access to required infrastructure; land title defects; risks relating
to obtaining permits on acceptable terms; competition; fluctuations in
currency exchange rates and interest rates; risks relating to raising
additional capital; fluctuations in energy prices; reliance on key personnel;
conflicts of interest; and, other risks described in the Company’s Management
Discussion & Analysis and other continuous disclosure documents.
All forward-looking information in this press
release is qualified in its entirety by this cautionary statement and, except
as may be required by law, the Company undertakes no obligation to revise or
update any forward-looking information as a result of new information, future
events or otherwise after the date hereof.
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
For more information or to be put on our email list,
please contact our office: (604) 662-3338 or US/Canada Toll Free:
1-866-662-3322, email: info@geopower.ca Investor
Relations: ir@geopower.ca
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