Western GeoPower Corp.

Western GeoPower Corp.

May 06, 2008 08:30 ET

Western GeoPower Corp.: Geysers Well Demonstrates 10 MW Initial Capacity

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2008) - Western GeoPower Corp., (TSX VENTURE:WGP)(FRANKFURT:WE6.F) a renewable energy development company, today announced that an eight hour multi-rate flow test carried out on completion of the WGP-1 well at The Geysers Geothermal Field in California has confirmed that the well is a strong producer, with an initial capacity of 10 MW (gross) and a forecast stabilized capacity of at least 7 MW (gross). The well will supply steam to the 35 MWe Western GeoPower Unit 1 plant, projected to start commercial operations in early 2010.

Well WGP-1 was directionally drilled to the east of the pad to a total depth of 8,410 feet (2,563 m) with numerous steam zones recorded between 5,400 feet (1,650 m) and bottom. Further deepening of the well was considered unnecessary. An eight-hour multi-rate flow test carried out by independent consultants GeothermEx, Inc. demonstrated an initial, unstabilized steam flow rate of about 161,000 lb/hr (72,100 kg/hr) at the design flowing wellhead pressure of approximately 80 psia. The rig has been skidded across the pad to immediately begin drilling well WGP-2 which is designed to intersect known productive zones to the north of the pad. Completion of WGP-2 is projected for July.

"We note with great satisfaction that the WGP-1 well is one of the strongest wells drilled at The Geysers during the past 20 years," said Dr. Subir Sanyal, President of GeothermEx. "In addition, the higher than expected static reservoir pressure encountered (at least 280 psia compared to 250 psia assumed for project design) provide encouragement that future wells may show higher capacity than had been anticipated throughout the Western GeoPower leasehold."

California-based GeothermEx is a recognized international authority in the evaluation of geothermal resources and has been involved in the development of all the producing geothermal fields in the United States and over 750 projects worldwide. Their knowledge of The Geysers geothermal field is extensive, having been associated with the development of the field for over 30 years.

"We are extremely pleased to report that the well's stabilized productivity is double our earlier expectations and the well has been completed one month ahead of schedule and considerably under budget," said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. "A review of earlier production records from the steam field suggests that the target zones for future wells may have similar potential to the well just drilled. If this is confirmed, and fewer wells are required to supply the plant, considerable cost savings may be realized."

Following completion of well WGP-2 and relocation of the rig to the next pad, isochronal tests will be conducted at both wells by Geothermex to assess their long-term productivity and the results will be used for reservoir modelling purposes. Current projections call for the drilling of five to seven additional production wells and one injector well, with the final number to be determined on completion of reservoir modelling. An existing well is being assessed for re-work and may be used as a second injection well. The drilling program is scheduled for completion in late 2009.

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 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.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Western GeoPower Corp.
    Investor Relations
    (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322
    (604) 646-6603 (FAX)
    Email: IR@geopower.ca
    Website: www.geopower.ca