WESTERN GEOPOWER ANNOUNCES FORMATION OF SPECIAL...
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NEWS RELEASE
DATE: July 14, 2009 FOR IMMEDIATE RELEASE
TRADING SYMBOLS: TSX-V (CANADA): WGP.V FRANKFURT: WE6.F
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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Western GeoPower Corp.
837 West Hastings Street Suite 411 Vancouver,
BC<br>V6C 3N6 Canada
WKN: 254049; ISIN: CA95827Q1037;
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