Western GeoPower Increases Geothermal Leasehold At The Geysers
VANCOUVER , Canada, October 10, 2006: Western GeoPower Corp., a renewable energy company focused on geothermal energy development, today announced the acquisition of a geothermal lease covering 140 acres contiguous to the recently acquired Unit 15 Steam Field located within The Geysers Geothermal Field in Northern California. The total area under lease by Western GeoPower at The Geysers exceeds 500 acres and it is anticipated that one power plant will process steam production from both leaseholds.
Western GeoPower has retained consultants GeothermEx, Inc. of Richmond, California, to provide an independent due diligence assessment of the resource on the combined leaseholds. GeothermEx is nearing completion of a review of a large database of resource and production history and anticipates completing its report during October, 2006.
“The new leasehold was an important contributor to generation at the original 62 megawatt capacity power plant, known as PG&E Unit 15, which operated at the steam field during 1979-1989,” said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. “The acquisition will enable Western GeoPower to regulate steam production from the combined properties to achieve the optimum conditions for power plant management and conservation of the resource.”
Roads and drill pad infrastructure are in excellent condition throughout both leaseholds and a 115 kilovolt transmission line connects the property to the transmission grid.
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 since 1960, the present generation level being about 900 megawatts of clean, baseload electricity. Western GeoPower’s Unit 15 leasehold is situated in the southwestern region of The Geysers in Sonoma County and much of the leasehold lies within the presently known boundary of The Geysers Geothermal Field. A commercial power plant of 62 megawatt (gross) capacity, known as PG&E Unit 15, operated at the leasehold during 1979-1989. The plant was shut down in 1989 and eventually dismantled, and the wells were plugged and abandoned.
It is now recognized that the Unit 15 plant was oversized for the available resource. For this reason, the wells supplying the plant experienced an unduly rapid decline in productivity, similar to the decline experienced throughout The Geysers at that time. Following the injection of reclaimed water into The Geysers from the Lake County Project starting in 1997 and the Santa Rosa Project starting in 2003, the earlier decline in productivity has been reversed, with an estimated resultant increase of 100 megawatts of capacity and an extension to the life of the field.
Corporate Overview
Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, base-load electricity generation. The Company holds 100% interests in the South Meager Geothermal Project in British Columbia, Canada and the Unit 15 Steam Field located in The Geysers Geothermal Field in California, United States.
On behalf of Western GeoPower Corp.
“Kenneth MacLeod”
Kenneth MacLeod, President & CEO |