WESTERN GEOPOWER ACQUIRES SECOND GEOTHERMAL RES...
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NEWS RELEASE
DATE: May 6, 2009 FOR IMMEDIATE RELEASE
TRADING SYMBOLS: TSX-V (CANADA): WGP.V FRANKFURT: WE6.F
WESTERN GEOPOWER ACQUIRES SECOND GEOTHERMAL RESERVOIR IN CALIFORNIA
VANCOUVER, Canada, May 6, 2009, TSX Venture Exchange Trading Symbol:
WGP - Western GeoPower Corp., a renewable energy company, today
announced the acquisition of approximately 3,000 acres of private
geothermal leases with a confirmed high-temperature geothermal
reservoir, at South Brawley, in Imperial County, California. The
South Brawley leases grant Western GeoPower the right to develop the
geothermal reservoir and build a plant for electricity generation.
Commercial geothermal power has been generated continuously
throughout Imperial County since the early 1980s, with the present
generation level being about 530 megawatts (MW) from the Salton Sea,
East Mesa and Heber plants. The Western GeoPower leasehold is
situated in the South Brawley Known Geothermal Resource Area, with
extensive infrastructure throughout the region providing ready access
for development.
A preliminary review of earlier data from the Western GeoPower South
Brawley leases conducted by independent consultants GeothermEx, Inc.,
has determined that the leases lie at the core of a geothermal
anomaly which has been well defined from geophysical surveys. Four
deep wells plus a side-track of a well (varying in depth from 13,381
feet to 14,000 feet) were drilled and flow tested on the Western
GeoPower property between 1978 and 1982. In addition, a prolonged
(34-day) pressure interference test was run in this field during
1982-1983.
Although these wells are now plugged and abandoned, they have
confirmed the existence of a high temperature (up to 278 C or 532 F)
reservoir, and pressure interference testing has demonstrated the
existence of high flow and storage capacities within the reservoir.
A wellhead productivity of 700,000 pounds per hour (equivalent to
about 7 MW) had been demonstrated by well testing. However, these
wells had a narrower diameter than is conventional for geothermal
wells today and the wells showed major formation damage. New wells
with a larger diameter drilled on the property should have a much
higher productivity.
The reservoir fluid is hyper-saline with a total dissolved solids
content of 22% to 23% and a non-condensable gas concentration in the
total fluid of 2% to 2.5%. The reservoir brine is highly enriched in
dissolved zinc, lead and silver. Preliminary modeling indicates that
the property can readily support simultaneous power generation and
commercial production of zinc, lead and silver.
"The South Brawley leases complement Western GeoPower's strategy to
acquire geothermal projects with demonstrated production potential,"
said Kenneth MacLeod, President and Chief Executive Officer of
Western GeoPower. "We are confident of achieving substantial time and
cost savings by taking advantage of the earlier well testing data and
targeting new wells to intersect the known productive zones."
Western GeoPower will retain GeothermEx, Inc. of Richmond,
California, to provide an independent assessment of the potential for
the South Brawley leases and design a drilling program to confirm the
resource. GeothermEx has conducted well test analyses, resource
assessment, reservoir simulation and mineral recovery modeling for
this site for various parties since the inception of this project in
the late 1970s.
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: new wells with a larger diameter drilled on the
property should have a much higher productivity; preliminary modeling
indicates that the property can readily support simultaneous power
generation and commercial production of zinc, lead and silver; we are
confident of achieving substantial time and cost savings by taking
advantage of the earlier well testing data and targeting new wells to
intersect the known productive zones; and, the Company will retain
GeothermEx, Inc. of Richmond, California, to provide an independent
assessment of the potential for the South Brawley leases and design a
drilling program to confirm the resource.
The forecasts and projections that make up the forward-looking
information are based on assumptions which include, but are not
limited to: 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:
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
our office: (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322,
email: info@geopower.ca Investor Relations: ir@geopower.ca
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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