NEWS
RELEASE
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DATE: July 14, 2009
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FOR IMMEDIATE
RELEASE
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TRADING SYMBOLS:
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TSX-V (CANADA): WGP.V
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FRANKFURT: WE6.F
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WESTERN GEOPOWER ANNOUNCES
FORMATION OF SPECIAL COMMITTEE TO CONDUCT
STRATEGIC REVIEW PROCESS
AND
PRELIMINARY RESULTS OF RESERVOIR MODELING
VANCOUVER, Canada, July 14, 2009,
TSX Venture Exchange Trading Symbol: WGP ? Western
GeoPower Corp., 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?
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: 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; and, 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.
The forecasts and projections
that make up the forward-looking information are based on assumptions which
include, but are not limited to: actual geothermal resources will be
consistent with projected resources; 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:
actual geothermal resources may differ from projected resources; the
development of geothermal projects by third parties near the Unit 1 project
could adversely affect actual geothermal resources available to the Unit 1
project; 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 Nicole
Robson ? Marketing and Media: 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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