NEWS RELEASE
DATE:
December 24,
2008
FOR IMMEDIATE RELEASE
TRADING
SYMBOLS: TSX-V (Canada):
WGP.V FRANKFURT: WE6.F
WESTERN GEOPOWER COMPLETES FIRST PHASE OF GEYSERS
DRILLING
VANCOUVER, Canada, December 24,
2008, TSX Venture Exchange Trading Symbol: WGP ? Western
GeoPower Corp., 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?
Kenneth MacLeod,
President & CEO
Cautionary Note Regarding Forward-Looking Statements
Statements in this release that are forward-looking are subject to
various risks and uncertainties concerning the specific factors identified
above that reflect the Company?s
expectations and projections about its future results. The
Company has tried whenever possible to identify these forward-looking
statements which include but are not limited to, words such as ?anticipates,? believes,? ?estimates,? ?expects,?
?plans,? ?intends,? ?potential,? and similar
expressions. Although the Company believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results
or developments may differ materially from those projected in the
forward-looking statements. The Company disclaims any obligation or
intention to update or to revise any forward-looking statement, whether as a
result of new information, future events or otherwise. Such information
contained herein represents management's best judgment as of the date hereof
based on information currently available.
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:
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