WESTERN GEOPOWER COMPLETES FIRST PHASE OF GEYSE...
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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: 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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