Western GeoPower Corp.

Western GeoPower Corp.

October 01, 2007 09:00 ET

Western GeoPower Corp.: Environmental Process Approval for Initial 6 Wells at the Geysers

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2007) -


Western GeoPower Corp. (TSX VENTURE:WGP)(FRANKFURT:WE6), a renewable energy development company, today announced that the California Division of Oil, Gas and Geothermal Resources has approved the environmental process for the drilling of up to six wells on four existing pads and utilizing existing roads at the company's Unit 1 geothermal project at The Geysers Geothermal Field in Northern California.

The company is engaged in securing a Conditional Use Permit from Sonoma County, along with related State and County permits required to commence the six-well drilling program and expects receipt of these permits by the end of November 2007. Permitting for additional wells beyond the initial six is being applied for under a separate application to Sonoma County for a Conditional Use Permit to construct the power plant, with approval projected for 2008.

"The timely receipt of the initial drilling permit is an important milestone for the Unit 1 project," said Kenneth MacLeod, Western GeoPower's President and CEO. "This ensures that the project remains on schedule for a Commercial Operations Date in early 2010, as agreed to under the terms of the Power Purchase Agreement with Pacific Gas & Electric."

In a feasibility report dated October 2006, independent consultants GeothermEx, Inc. projected that the Unit 1 leasehold, comprising approximately 600 acres at that date, will commercially support a 25.5 megawatt (net) power plant for a minimum of 20 years, with generation continuing at a slightly reduced factor through 30 years. In April 2007, the leasehold was increased by 413 acres to 1,017 acres. Earlier production records from the extended leasehold show one well that had an initial capacity of 7 megawatts, suggesting the potential for an increase in capacity beyond 25.5 megawatts (net) for the proposed Unit 1 power plant, or the possibility of a second plant should additional capacity be demonstrated.

Western GeoPower is scheduling the start of drilling for December 2007, subject to receipt of the requisite permits in November. The selection of a drilling contractor will be completed by mid-October and an announcement will immediately follow. With each well expected to take up to 90 days to drill, test and skid or move to the next location, the initial six well program is projected to take from 15 to 18 months to complete. Additional wells will be drilled prior to the Commercial Operations Date to deliver the optimum capacity for the steam field and plant operations.

The majority of the equity component of project financing for the Unit 1 project has been accomplished through the recently announced funding of $18.6 million. Additional equity injections are expected to be raised through the exercise of outstanding warrants which expire in December 2008. The balance of project financing is anticipated to be secured during 2008, through a combination of construction loan and long-term debt financing.

Corporate Overview

Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, baseload electricity generation. The Company is developing a 25.5 Megawatt (net) geothermal power plant at The Geysers Geothermal Field in Sonoma County, California, United States. Western GeoPower is also developing the South Meager Geothermal Project in British Columbia, Canada.

On behalf of Western GeoPower Corp.

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.

Contact Information

  • Western GeoPower Corp.
    Kenneth MacLeod
    President & CEO
    (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322
    (604) 646-6603 (FAX)
    Email: info@geopower.ca
    Western GeoPower Corp.
    Investor Relations
    Email: IR@geopower.ca